Somnigroup International has a Cash Ratio of 0.12. 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 Somnigroup International's Cash Ratio or its related term are showing as below:
SGI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.07 Med: 0.08 Max: 0.29
Current: 0.12
During the past 13 years, Somnigroup International's highest Cash Ratio was 0.29. The lowest was 0.07. And the median was 0.08.
SGI's Cash Ratio is ranked worse than 80.52% of 426
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 0.485
vs SGI: 0.12
Somnigroup International 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 Somnigroup International's Cash Ratio
For the Furnishings, Fixtures & Appliances subindustry, Somnigroup International'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.
Somnigroup International's Cash Ratio Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Somnigroup International's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Somnigroup International'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.
Somnigroup International (NYSE:SGI) 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.
Somnigroup International Cash Ratio Related Terms
Thank you for viewing the detailed overview of Somnigroup International's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Somnigroup International Inc is a bedding company, dedicated to improving people's lives through better sleep. With superior capabilities in design, manufacturing, distribution and retail, It delivers breakthrough sleep solutions and serves the evolving needs of consumers in more than 100 countries worldwide through its fully-owned businesses, Tempur Sealy, Mattress Firm and Dreams. The company's portfolio includes the brand such as Tempur-Pedic, Sealy and Stearns & Foster, and its Multinational omnichannel platform enables the company to meet consumers wherever shop, offering a personal connection and innovation to provide a retail experience and tailored solutions.
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