Sole Elite Group has a Cash Ratio of 1.43. 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 Sole Elite Group's Cash Ratio or its related term are showing as below:
SOLE's Cash Ratio is not ranked *
in the Manufacturing - Apparel & Accessories industry.
Industry Median: 0.36 * Ranked among companies with meaningful Cash Ratio only.
Sole Elite Group (NAS:SOLE) 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.
Sole Elite Group Cash Ratio Related Terms
Sole Elite Group Cash Ratio Historical Data
* Premium members only.
The historical data trend for Sole Elite Group'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.
Sole Elite Group Cash Ratio Chart
Sole Elite Group Annual Data
Trend
Dec12
Dec13
Dec14
Cash Ratio
0.89
1.84
1.43
Sole Elite Group Semi-Annual Data
Dec12
Dec13
Dec14
Cash Ratio
0.89
1.84
1.43
SOLE vs FORD, JCLY, TLF: Cash Ratio Comparison
For the Footwear & Accessories subindustry, Sole Elite 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.
Sole Elite Group Cash Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sole Elite Group's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Sole Elite 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.
Sole Elite Group (SOLE) has a Cash Ratio of 1.43 as of Dec. 2014. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's Cash Ratio too high?
Sole Elite Group's current Cash Ratio is 1.43. The Manufacturing - Apparel & Accessories industry median Cash Ratio is 0.36. Sole Elite Group's value of 1.43 is 297.2% above this industry median.
How does Sole Elite Group's Cash Ratio compare to FORD and JCLY?
Sole Elite Group's Cash Ratio of 1.43 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Cash Ratio is 0.36. Sole Elite Group's value of 1.43 is 297.2% above this benchmark. 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 Manufacturing - Apparel & Accessories company?
The median Cash Ratio among Manufacturing - Apparel & Accessories companies is 0.36, based on 1,017 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. Sole Elite Group's current Cash Ratio of 1.43 is 297.2% 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 Sole Elite Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Cash Ratio is 0.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current Cash Ratio is 1.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current Cash Ratio of 1.43. The current Cash Ratio is 1.43 and 297.2% above the Manufacturing - Apparel & Accessories industry median of 0.36. 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 Sole Elite Group (SOLE), the current Cash Ratio is 1.43 as of Dec. 2014. 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.
Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.
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