Tung Ho Steel Enterprise has a Cash Ratio of 0.09. 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 Tung Ho Steel Enterprise's Cash Ratio or its related term are showing as below:
TPE:2006'
s Cash Ratio Range Over the Past 10 Years
Min: 0.05 Med: 0.1 Max: 0.44
Current: 0.09
During the past 13 years, Tung Ho Steel Enterprise's highest Cash Ratio was 0.44. The lowest was 0.05. And the median was 0.10.
TPE:2006's Cash Ratio is ranked worse than 74.28% of 591
companies
in the Steel industry
Industry Median: 0.28
vs TPE:2006: 0.09
Tung Ho Steel Enterprise 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 Tung Ho Steel Enterprise's Cash Ratio
For the Steel subindustry, Tung Ho Steel Enterprise'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.
Tung Ho Steel Enterprise's Cash Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Tung Ho Steel Enterprise's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Tung Ho Steel Enterprise's Cash Ratio falls into.
Tung Ho Steel Enterprise Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Tung Ho Steel Enterprise'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.
Tung Ho Steel Enterprise (TPE:2006) 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.
Tung Ho Steel Enterprise Cash Ratio Related Terms
Thank you for viewing the detailed overview of Tung Ho Steel Enterprise's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Tung Ho Steel Enterprise (TPE:2006) Business Description
Tung Ho Steel Enterprise Corp is a Taiwan-based company that is primarily engaged in the manufacturing and distribution of steel products. The company's product portfolio includes rebar, which is primarily applied in building projects, including high-rises, factories, public construction, and social welfare initiatives; steel section, which is used in buildings (steel structures) and other construction projects (bridges, ships, vehicles, and so on); and steel plate, which is broadly utilized in factories, logistics warehouses, office and residential buildings, bridges, and other buildings. Rebar and steel section account for the majority of the company's revenue. The company generates most of its sales from the Taiwan domestic market.
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