Tel Instrument Electronics has a Cash Ratio of 0.08. 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 Tel Instrument Electronics's Cash Ratio or its related term are showing as below:
TIKK'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.19 Max: 0.72
Current: 0.08
During the past 13 years, Tel Instrument Electronics's highest Cash Ratio was 0.72. The lowest was 0.01. And the median was 0.19.
TIKK's Cash Ratio is ranked worse than 83.88% of 304
companies
in the Aerospace & Defense industry
Industry Median: 0.345
vs TIKK: 0.08
Tel Instrument Electronics 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.
Competitive Comparison of Tel Instrument Electronics's Cash Ratio
For the Aerospace & Defense subindustry, Tel Instrument Electronics'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.
Tel Instrument Electronics's Cash Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Tel Instrument Electronics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Tel Instrument Electronics's Cash Ratio falls into.
Tel Instrument Electronics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Tel Instrument Electronics (OTCPK:TIKK) 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.
Tel Instrument Electronics Cash Ratio Related Terms
Thank you for viewing the detailed overview of Tel Instrument Electronics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Tel Instrument Electronics Corp is a designer and manufacturer of avionics test and measurement solutions for commercial air transport, general aviation, and government, military aerospace, and defense markets. It designs, manufactures, and sells instruments to test and measure, and calibrates and repairs airborne navigation and communication equipment. The company's reportable segments are Avionics government and Avionics commercial. The Avionics government segment, which derives key revenue, consists of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries. Geographically, the company generates a majority of its revenue from the United States and the rest from international markets.
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