NXT Energy Solutions has a Cash Ratio of 0.09. 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 NXT Energy Solutions's Cash Ratio or its related term are showing as below:
NSFDF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.09 Med: 2.2 Max: 10.04
Current: 0.23
During the past 13 years, NXT Energy Solutions's highest Cash Ratio was 10.04. The lowest was 0.09. And the median was 2.20.
NSFDF's Cash Ratio is ranked worse than 65.95% of 981
companies
in the Oil & Gas industry
Industry Median: 0.43
vs NSFDF: 0.23
NXT Energy Solutions Cash Ratio Historical Data
The historical data trend for NXT Energy Solutions'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 NXT Energy Solutions's Cash Ratio
For the Oil & Gas Equipment & Services subindustry, NXT Energy Solutions'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.
NXT Energy Solutions's Cash Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, NXT Energy Solutions's Cash Ratio distribution charts can be found below:
* The bar in red indicates where NXT Energy Solutions'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.
NXT Energy Solutions (OTCPK:NSFDF) 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.
NXT Energy Solutions Cash Ratio Related Terms
Thank you for viewing the detailed overview of NXT Energy Solutions's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
NXT Energy Solutions Inc is a Canadian company which offers geophysical service to the upstream oil and gas industry using its gravity-based Stress Field Detection (SFD) remote-sensing survey system. The SFD is an airborne survey system that is used in the oil and natural gas exploration industry to help in identifying areas with hydrocarbon reservoir potential. The SFD system is used to accelerate onshore and offshore exploration over any terrain with the objective of reducing the total time, cost and risk of the exploration cycle, with no environmental footprint or community impact.
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