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Erayak Power Solution Group has a Cash Ratio of 0.23. 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 Erayak Power Solution Group's Cash Ratio or its related term are showing as below:
RAYA'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.23 Max: 0.44
Current: 0.23
During the past 7 years, Erayak Power Solution Group's highest Cash Ratio was 0.44. The lowest was 0.03. And the median was 0.23.
RAYA's Cash Ratio is ranked worse than 73.76% of 3034
companies
in the Industrial Products industry
Industry Median: 0.52
vs RAYA: 0.23
Erayak Power Solution Group (NAS:RAYA) 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.
Erayak Power Solution Group Cash Ratio Related Terms
Erayak Power Solution Group 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 Electrical Equipment & Parts subindustry, Erayak Power Solution Group'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.
Erayak Power Solution Group Cash Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Erayak Power Solution Group'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.
Erayak Power Solution Group (RAYA) has a Cash Ratio of 0.23 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Erayak Power Solution Group and its competitors. This is near median its historical median of 0.23. Over the past decade, Erayak Power Solution Group's Cash Ratio has ranged from 0.03 to 0.44. According to the industry distribution chart, Erayak Power Solution Group ranks #2238 out of 3034 companies in the Industrial Products industry, placing it in the top 73.8%.
Is Erayak Power Solution Group's Cash Ratio too high?
Erayak Power Solution Group's current Cash Ratio of 0.23 is near median its 10-year median of 0.23. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.44. The Industrial Products industry median Cash Ratio is 0.52. Erayak Power Solution Group's value of 0.23 is 55.8% below this industry median. Based on the distribution chart, Erayak Power Solution Group ranks #2238 out of 3034 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Erayak Power Solution Group has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Erayak Power Solution Group's Cash Ratio compare to ELPW and KRFG?
According to the Industrial Products industry distribution chart, Erayak Power Solution Group ranks #2238 out of 3034 companies for Cash Ratio. This places Erayak Power Solution Group in the lower half of its industry. The industry median Cash Ratio is 0.52. Erayak Power Solution Group's value of 0.23 is 55.8% below this benchmark. Historically, Erayak Power Solution Group's own Cash Ratio has ranged from 0.03 to 0.44 over the past decade. While the company's 10-year median is 0.23 vs. the industry median of 0.52, Erayak Power Solution Group has consistently been below 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 an Industrial Products company?
The median Cash Ratio among Industrial Products companies is 0.52, based on 3,034 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. Erayak Power Solution Group's current Cash Ratio of 0.23 is 55.8% 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 Erayak Power Solution Group and its competitors. For the Industrial Products industry, the median Cash Ratio is 0.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Erayak Power Solution Group's current Cash Ratio is 0.23, which is near median its own 10-year median of 0.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erayak Power Solution Group stock overvalued right now?
Based on GuruFocus' analysis, Erayak Power Solution Group (RAYA) is currently considered Possible Value Trap. The stock's GF Value™ is $2,159.96, compared to a current price of $2.39 — trading 99.9% below its estimated fair value. The current Cash Ratio is 0.23, which is near median its 10-year median of 0.23 and 55.8% below the Industrial Products industry median of 0.52. Erayak Power Solution Group's overall GF Score™ is 54/100 with 8 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 Erayak Power Solution Group (RAYA), the current Cash Ratio is 0.23 as of Dec. 2025. 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 Erayak Power Solution Group (RAYA) Overvalued in 2026?
Based on GuruFocus' analysis, Erayak Power Solution Group stock appears to be undervalued.
The current stock price of $2.39 is trading 99.9% below its estimated GF Value™ of $2,159.96.
GuruFocus considers Erayak Power Solution Group to be Possible Value Trap.
Key valuation signals for RAYA:
Cash Ratio: 0.23 (near median its 10-year median of 0.23)
GF Value™: $2,159.96 vs. price of $2.39 (99.9% below fair value)
Industry Position: 55.8% below the Industrial Products median (#2238 of 3034)
No single metric tells the full story. See the RAYA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Erayak Power Solution Group Inc is engaged in the manufacturing, research and development (R&D), and wholesale and retail of power solution products. The group focuses on manufacturing new energy storage and inverter devices. Its product portfolio includes sine wave and off-grid inverters, inverters and gasoline generators, battery and smart chargers, and custom-designed products. The products are used principally in agricultural and industrial vehicles, recreational vehicles (RVs), electrical appliances, and outdoor living products. The company generates the majority of its revenue from Inverters. The company generates revenue from five main markets, which are China, Poland, Mexico, the U.K., and Portugal. It derives maximum revenue from China.
54GF Score
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