Gourmet Master Co has a Cash Ratio of 1.12. 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 Gourmet Master Co's Cash Ratio or its related term are showing as below:
TPE:2723'
s Cash Ratio Range Over the Past 10 Years
Min: 0.69 Med: 1.03 Max: 1.42
Current: 1.12
During the past 13 years, Gourmet Master Co's highest Cash Ratio was 1.42. The lowest was 0.69. And the median was 1.03.
TPE:2723's Cash Ratio is ranked better than 77.39% of 345
companies
in the Restaurants industry
Industry Median: 0.55
vs TPE:2723: 1.12
Gourmet Master Co Cash Ratio Historical Data
The historical data trend for Gourmet Master 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 Gourmet Master Co's Cash Ratio
For the Restaurants subindustry, Gourmet Master 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.
Gourmet Master Co's Cash Ratio Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Gourmet Master Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Gourmet Master Co's Cash Ratio falls into.
Gourmet Master 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.
Gourmet Master 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.
Gourmet Master Co (TPE:2723) 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.
Gourmet Master Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Gourmet Master Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Gourmet Master Co Ltd operates a chain of cafe stores under the brand 85 Degrees Daily Cafe. Its branch footprints spread across the urban areas of Taiwan, Mainland China, and Hong Kong. The company also owns a few stores in the United States and Australia. The company is mainly engaged in the production and distribution of beverages, including coffee, tea, milk tea, and cold drinks, as well as bakery products such as cakes, bread, and Western-style desserts. Gourmet Master also engages in the retailing of packaged desserts, instant coffee, imported coffee beans, and gift boxes, as well as wholesale bakery machinery.
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