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The a2 Milk CoNZSE:ATM +1.24%90 Cash Ratio is 0.93 as of Jun. 2026, which is 58% below its 10-year median of 2.19. GuruFocus rates NZSE:ATM with a GF Score™ of 90/100 and a GF Value™ of NZ$8.11 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,895 Consumer Packaged Goods companies, The a2 Milk Co ranks better than 70.87% on this metric.
The a2 Milk Co has a Cash Ratio of 0.93. 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 The a2 Milk Co's Cash Ratio or its related term are showing as below:
NZSE:ATM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.93 Med: 2.19 Max: 3.19
Current: 0.93
During the past 13 years, The a2 Milk Co's highest Cash Ratio was 3.19. The lowest was 0.93. And the median was 2.19.
NZSE:ATM's Cash Ratio is ranked better than 70.87% of 1895
companies
in the Consumer Packaged Goods industry
Industry Median: 0.39
vs NZSE:ATM: 0.93
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.
The a2 Milk Co Cash Ratio Related Terms
The a2 Milk Co Cash Ratio Historical Data
* Premium members only.
The historical data trend for The a2 Milk Co'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.
For the Packaged Foods subindustry, The a2 Milk Co'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.
The a2 Milk Co Cash Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The a2 Milk Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where The a2 Milk Co'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.
The a2 Milk Co (NZSE:ATM) has a Cash Ratio of 0.93 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on The a2 Milk Co and its competitors. This is 58% below median its historical median of 2.19. Over the past decade, The a2 Milk Co's Cash Ratio has ranged from 0.93 to 3.19. According to the industry distribution chart, The a2 Milk Co ranks #552 out of 1895 companies in the Consumer Packaged Goods industry, placing it in the top 29.1%.
Is The a2 Milk Co's Cash Ratio too high?
The a2 Milk Co's current Cash Ratio of 0.93 is 58% below median its 10-year median of 2.19. Over the past 10 years, this metric has ranged from a low of 0.93 to a high of 3.19. The Consumer Packaged Goods industry median Cash Ratio is 0.39. The a2 Milk Co's value of 0.93 is 138.5% above this industry median. Based on the distribution chart, The a2 Milk Co ranks #552 out of 1895 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, The a2 Milk Co has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The a2 Milk Co's Cash Ratio compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, The a2 Milk Co ranks #552 out of 1895 companies for Cash Ratio. This puts The a2 Milk Co in the upper half of its industry. The industry median Cash Ratio is 0.39. The a2 Milk Co's value of 0.93 is 138.5% above this benchmark. Historically, The a2 Milk Co's own Cash Ratio has ranged from 0.93 to 3.19 over the past decade. While the company's 10-year median is 2.19 vs. the industry median of 0.39, The a2 Milk Co has consistently been above the industry average. 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 Consumer Packaged Goods company?
The median Cash Ratio among Consumer Packaged Goods companies is 0.39, based on 1,895 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. The a2 Milk Co's current Cash Ratio of 0.93 is 138.5% above 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 The a2 Milk Co and its competitors. For the Consumer Packaged Goods industry, the median Cash Ratio is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The a2 Milk Co's current Cash Ratio is 0.93, which is 58% below median its own 10-year median of 2.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The a2 Milk Co stock overvalued right now?
Based on GuruFocus' analysis, The a2 Milk Co (NZSE:ATM) is currently considered Fairly Valued. The stock's GF Value™ is NZ$8.11, compared to a current price of NZ$8.16 — trading 0.6% above its estimated fair value. The current Cash Ratio is 0.93, which is 58% below median its 10-year median of 2.19 and 138.5% above the Consumer Packaged Goods industry median of 0.39. The a2 Milk Co's overall GF Score™ is 90/100 with 2 warning signs to review. 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 The a2 Milk Co (NZSE:ATM), the current Cash Ratio is 0.93 as of Jun. 2026. 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.
Is The a2 Milk Co (NZSE:ATM) Overvalued in 2026?
Based on GuruFocus' analysis, The a2 Milk Co stock appears to be overvalued.
The current stock price of NZ$8.16 is trading 0.6% above its estimated GF Value™ of NZ$8.11.
GuruFocus considers The a2 Milk Co to be Fairly Valued.
Key valuation signals for NZSE:ATM:
Cash Ratio: 0.93 (58% below median its 10-year median of 2.19)
GF Value™: NZ$8.11 vs. price of NZ$8.16 (0.6% above fair value)
Industry Position: 138.5% above the Consumer Packaged Goods median (#552 of 1895)
No single metric tells the full story. See the NZSE:ATM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
A2 Milk is a New Zealand licensor and marketer of fresh milk, infant formula, and other dairy products that lack the A1 beta-casein protein. The firm was founded in 2000 by Corran McLachlan, who developed a genetic test to determine which proteins a cow produces in its milk, and business partner Howard Paterson. The company has been through a tumultuous history of receivership, legal battles, and strategic shifts, but emerged in its current structure in 2006 and listed publicly in March 2013.
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