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REE AutomotiveREEAF Cash Ratio is 1.12 as of Dec. 2025, which is 78% below its 10-year median of 5.05. The stock has 7 warning signs investors should review. Among 1,308 Vehicles & Parts companies, REE Automotive ranks better than 81.27% on this metric.
REE Automotive has a Cash Ratio of 1.12. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for REE Automotive's Cash Ratio or its related term are showing as below:
REEAF'
s Cash Ratio Range Over the Past 10 Years
Min: 1.12 Med: 5.05 Max: 14.36
Current: 1.12
During the past 7 years, REE Automotive's highest Cash Ratio was 14.36. The lowest was 1.12. And the median was 5.05.
REEAF's Cash Ratio is ranked better than 81.27% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 0.37
vs REEAF: 1.12
REE Automotive (OTCPK:REEAF) 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.
REE Automotive Cash Ratio Related Terms
REE Automotive Cash Ratio Historical Data
* Premium members only.
The historical data trend for REE Automotive'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 Auto Parts subindustry, REE Automotive'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.
REE Automotive Cash Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, REE Automotive's Cash Ratio distribution charts can be found below:
* The bar in red indicates where REE Automotive'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.
REE Automotive (REEAF) has a Cash Ratio of 1.12 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on REE Automotive and its competitors. This is 78% below median its historical median of 5.05. Over the past decade, REE Automotive's Cash Ratio has ranged from 1.12 to 14.36. According to the industry distribution chart, REE Automotive ranks #245 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 18.7%.
Is REE Automotive's Cash Ratio too high?
REE Automotive's current Cash Ratio of 1.12 is 78% below median its 10-year median of 5.05. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 14.36. The Vehicles & Parts industry median Cash Ratio is 0.37. REE Automotive's value of 1.12 is 202.7% above this industry median. Based on the distribution chart, REE Automotive ranks #245 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers.
How does REE Automotive's Cash Ratio compare to INEO and FFLO?
According to the Vehicles & Parts industry distribution chart, REE Automotive ranks #245 out of 1308 companies for Cash Ratio. This places REE Automotive in the top 19% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.37. REE Automotive's value of 1.12 is 202.7% above this benchmark. Historically, REE Automotive's own Cash Ratio has ranged from 1.12 to 14.36 over the past decade. While the company's 10-year median is 5.05 vs. the industry median of 0.37, REE Automotive 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 Vehicles & Parts company?
The median Cash Ratio among Vehicles & Parts companies is 0.37, based on 1,308 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. REE Automotive's current Cash Ratio of 1.12 is 202.7% 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 REE Automotive and its competitors. For the Vehicles & Parts industry, the median Cash Ratio is 0.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REE Automotive's current Cash Ratio is 1.12, which is 78% below median its own 10-year median of 5.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REE Automotive stock overvalued right now?
Based on GuruFocus' analysis, REE Automotive (REEAF) is currently considered Possible Value Trap. The stock's GF Value™ is $2.75, compared to a current price of $0.05 — trading 98.2% below its estimated fair value. The current Cash Ratio is 1.12, which is 78% below median its 10-year median of 5.05 and 202.7% above the Vehicles & Parts industry median of 0.37. 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 REE Automotive (REEAF), the current Cash Ratio is 1.12 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.
REE Automotive Ltd is an automotive technology company focused on building commercial electric vehicles controlled fully by-wire. The company is in early stages of commercialization and develop and produce software-defined vehicle (SDV) technology that manages vehicle operations and features through proprietarily-developed software. The company has geographical preference in Israel, Germany, United States, United Kingdom, and other regions.
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