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MEP Infrastructure Developers has a Cash Ratio of 0.07. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for MEP Infrastructure Developers's Cash Ratio or its related term are showing as below:
NSE:MEP's Cash Ratio is not ranked *
in the Construction industry.
Industry Median: 0.35 * Ranked among companies with meaningful Cash Ratio only.
MEP Infrastructure Developers (NSE:MEP) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
MEP Infrastructure Developers Cash Ratio Related Terms
MEP Infrastructure Developers Cash Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Infrastructure Operations subindustry, MEP Infrastructure Developers's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MEP Infrastructure Developers Cash Ratio vs Construction Industry
For the Construction industry and Industrials sector, MEP Infrastructure Developers's Cash Ratio distribution charts can be found below:
* The bar in red indicates where MEP Infrastructure Developers's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEP Infrastructure Developers (NSE:MEP) has a Cash Ratio of 0.07 as of Mar. 2024. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on MEP Infrastructure Developers and its competitors.
Is MEP Infrastructure Developers' Cash Ratio too high?
MEP Infrastructure Developers' current Cash Ratio is 0.07. The Construction industry median Cash Ratio is 0.35. MEP Infrastructure Developers' value of 0.07 is 80% below this industry median. Overall, MEP Infrastructure Developers has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does MEP Infrastructure Developers' Cash Ratio compare to VRRM?
MEP Infrastructure Developers' Cash Ratio of 0.07 can be compared against companies in the Construction industry. The industry median Cash Ratio is 0.35. MEP Infrastructure Developers' value of 0.07 is 80% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Construction company?
The median Cash Ratio among Construction companies is 0.35, based on 1,742 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MEP Infrastructure Developers's current Cash Ratio of 0.07 is 80% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on MEP Infrastructure Developers and its competitors. For the Construction industry, the median Cash Ratio is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MEP Infrastructure Developers's current Cash Ratio is 0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MEP Infrastructure Developers stock overvalued right now?
MEP Infrastructure Developers (NSE:MEP) has a current Cash Ratio of 0.07. The current Cash Ratio is 0.07 and 80% below the Construction industry median of 0.35. MEP Infrastructure Developers' overall GF Score™ is 4/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For MEP Infrastructure Developers (NSE:MEP), the current Cash Ratio is 0.07 as of Mar. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
MEP Infrastructure Developers Ltd is an India-based infrastructure company. It is engaged in the business activities of road construction, operation, maintenance and toll collection. The group operates in the business segments of Toll collection, Operation and Maintenance, and Construction. It generates maximum revenue from the Toll collection and repairs and maintenance segments. The company provides toll management service and assists its clients in addressing the complexities of the implementation and operation of toll systems. The organization also helps in the installation of electronic toll and cash collection systems, communication networks, and intelligent transportation systems. It principally operates in India.
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