Solera Holdings has a Cash Ratio of 1.63. 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 Solera Holdings's Cash Ratio or its related term are showing as below:
SLH's Cash Ratio is not ranked *
in the Software industry.
Industry Median: 0.76 * Ranked among companies with meaningful Cash Ratio only.
Solera Holdings Cash Ratio Historical Data
The historical data trend for Solera Holdings'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 Solera Holdings's Cash Ratio
For the Software - Application subindustry, Solera Holdings'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.
Solera Holdings's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Solera Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Solera Holdings's Cash Ratio falls into.
Solera Holdings Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Solera Holdings's Cash Ratio for the fiscal year that ended in Jun. 2015 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.
Solera Holdings (NYSE:SLH) 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.
Solera Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of Solera Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Solera Holdings (Solera Holdings) Business Description
Solera Holdings Inc was incorporated on February 1, 2005 in Delaware. The Company is a provider of software and services to the automobile insurance claims processing industry. It also provides products and services that complement or leverage the insurance claims processing software and services. These core extensions include products and services for used vehicle validation, electronic titling, property claims management, fraud detection, salvage yard management, disposition of salvage vehicles, subrogation, and data and analytics used by insurers in the re-underwriting of their insured drivers. Its insurance claims processing customers include insurance companies, collision repair facilities, assessors and automotive recyclers. The Company operates in more than 65 countries across six continents. Its sales and marketing personnel identify and target specific sales opportunities and manage customer relationships. The Company is subject to government regulation and, from time to time, companies in similar lines of business to it are subject to adverse publicity concerning the use of such data.
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