Hangzhou XZB Tech Co has a Cash Ratio of 2.46. 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 Hangzhou XZB Tech Co's Cash Ratio or its related term are showing as below:
SHSE:603040'
s Cash Ratio Range Over the Past 10 Years
Min: 1.34 Med: 2.83 Max: 10.57
Current: 2.46
During the past 13 years, Hangzhou XZB Tech Co's highest Cash Ratio was 10.57. The lowest was 1.34. And the median was 2.83.
SHSE:603040's Cash Ratio is ranked better than 93.44% of 1295
companies
in the Vehicles & Parts industry
Industry Median: 0.35
vs SHSE:603040: 2.46
Hangzhou XZB Tech Co Cash Ratio Historical Data
The historical data trend for Hangzhou XZB Tech 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.
Competitive Comparison of Hangzhou XZB Tech Co's Cash Ratio
For the Auto Parts subindustry, Hangzhou XZB Tech 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.
Hangzhou XZB Tech Co's Cash Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hangzhou XZB Tech Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Hangzhou XZB Tech Co's Cash Ratio falls into.
Hangzhou XZB Tech Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Hangzhou XZB Tech Co's Cash Ratio for the fiscal year that ended in Dec. 2023 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.
Hangzhou XZB Tech Co (SHSE:603040) 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.
Hangzhou XZB Tech Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Hangzhou XZB Tech Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hangzhou XZB Tech Co Ltd is a China based company engaged in the research and development of valve train system and parts manufacturing in car industry. The products offered by the company includes valve cotters (collets), valve spring retainers, hydraulic lash adjusters and finger followers, push rods and tappets for heavy duty diesel engines. In addition, the company also produces precision cold forming components together with good service for power tool, household electrical appliance, aerospace, machinery and other applications.
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