TSCC (Technology Solutions Co) Cash Ratio: 6.31 (As of Dec. 2008)

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What is Technology Solutions Co Cash Ratio?

Technology Solutions Co TSCC Cash Ratio is 6.31 as of Dec. 2008.

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Technology Solutions Co's Cash Ratio for the quarter that ended in Dec. 2008 was 6.31.

Technology Solutions Co has a Cash Ratio of 6.31. 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 Technology Solutions Co's Cash Ratio or its related term are showing as below:

TSCC's Cash Ratio is not ranked *
in the Software industry.
Industry Median: 0.78
* Ranked among companies with meaningful Cash Ratio only.

Technology Solutions Co  (OTCPK:TSCC) 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.

Technology Solutions Co Cash Ratio Related Terms

Technology Solutions Co Cash Ratio Historical Data

* Premium members only.

The historical data trend for Technology Solutions 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.

Technology Solutions Co Cash Ratio Chart

Technology Solutions Co Annual Data
Trend Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Cash Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.66 2.47 1.70 2.08 6.31

Technology Solutions Co Quarterly Data
Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08
Cash Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.08 1.99 3.91 5.38 6.31

TSCC vs SYSX: Cash Ratio Comparison

For the Information Technology Services subindustry, Technology Solutions 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.

Technology Solutions Co Cash Ratio vs Software Industry

For the Software industry and Technology sector, Technology Solutions Co's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Technology Solutions Co's Cash Ratio falls into.


Technology Solutions 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.

Technology Solutions Co's Cash Ratio for the fiscal year that ended in Dec. 2008 is calculated as:

Cash Ratio (A: Dec. 2008 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=7.993/1.266
=6.31

Technology Solutions Co's Cash Ratio for the quarter that ended in Dec. 2008 is calculated as:

Cash Ratio (Q: Dec. 2008 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=7.993/1.266
=6.31

* 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.

Frequently Asked Questions Learn more about Cash Ratio →
What does a Cash Ratio of 6.31 mean?
Technology Solutions Co (TSCC) has a Cash Ratio of 6.31 as of Dec. 2008. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Technology Solutions Co and its competitors.
Is Technology Solutions Co's Cash Ratio too high?
Technology Solutions Co's current Cash Ratio is 6.31. The Software industry median Cash Ratio is 0.78. Technology Solutions Co's value of 6.31 is 709% above this industry median.
How does Technology Solutions Co's Cash Ratio compare to SYSX?
Technology Solutions Co's Cash Ratio of 6.31 can be compared against companies in the Software industry. The industry median Cash Ratio is 0.78. Technology Solutions Co's value of 6.31 is 709% 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 Software company?
The median Cash Ratio among Software companies is 0.78, based on 2,813 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. Technology Solutions Co's current Cash Ratio of 6.31 is 709% 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 Technology Solutions Co and its competitors. For the Software industry, the median Cash Ratio is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Technology Solutions Co's current Cash Ratio is 6.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Technology Solutions Co stock overvalued right now?
Technology Solutions Co (TSCC) has a current Cash Ratio of 6.31. The current Cash Ratio is 6.31 and 709% above the Software industry median of 0.78. 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 Technology Solutions Co (TSCC), the current Cash Ratio is 6.31 as of Dec. 2008. 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.

Technology Solutions Co Business Description

Address 55 East Monroe street, Suite 2600, Chicago, IL, USA, 60603
Technology Solutions Co provides business-consulting services across a broad range of industries and areas of expertise. The company provides business strategy and assessment services.