RailTel of India has a Cash Ratio of 0.55. 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 RailTel of India's Cash Ratio or its related term are showing as below:
NSE:RAILTEL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.3 Med: 0.54 Max: 1.96
Current: 0.55
During the past 10 years, RailTel of India's highest Cash Ratio was 1.96. The lowest was 0.30. And the median was 0.54.
NSE:RAILTEL's Cash Ratio is ranked better than 69.15% of 376
companies
in the Telecommunication Services industry
Industry Median: 0.3
vs NSE:RAILTEL: 0.55
RailTel of India Cash Ratio Historical Data
The historical data trend for RailTel of India's Cash Ratio can be seen below:
* 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.
Competitive Comparison of RailTel of India's Cash Ratio
For the Telecom Services subindustry, RailTel of India'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.
RailTel of India's Cash Ratio Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, RailTel of India's Cash Ratio distribution charts can be found below:
* The bar in red indicates where RailTel of India's Cash Ratio falls into.
RailTel of India Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
RailTel of India's Cash Ratio for the fiscal year that ended in Mar. 2024 is calculated as:
* 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.
RailTel of India (NSE:RAILTEL) 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.
RailTel of India Cash Ratio Related Terms
Thank you for viewing the detailed overview of RailTel of India's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
RailTel Corporation of India Ltd is a neutral telecom infrastructure provider in the country. It owns a pan-India optic fiber network on an exclusive Right of Way along the Railway track. The company's operating segment includes Telecom Services and Project Work services. It generates maximum revenue from the Telecom Services segment. The telecom services segment of the company provides services such as Managed Data Services; Leased Lines; Virtual Private Networks; Internet Leased Lines; Data Centre; Tower collocation, Rack and space, and NLD for voice carriage, and the project work services involve the following projects; National Optical Fiber Networks, Telecom and IT services related projects, and Enterprise specific IT & ITES Projects.
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