TescoTSCDF 78 Cash Ratio is 0.29 as of Feb. 2026, which is 4% above its 10-year median of 0.28. GuruFocus rates TSCDF with a GF Score™ of 78/100 and a GF Value™ of $5.48 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 303 Retail - Defensive companies, Tesco ranks better than 51.16% on this metric.
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. Tesco's Cash Ratio for the quarter that ended in Feb. 2026 was 0.29.
Tesco has a Cash Ratio of 0.29. 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 Tesco's Cash Ratio or its related term are showing as below:
TSCDF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.16 Med: 0.28 Max: 0.33
Current: 0.29
During the past 13 years, Tesco's highest Cash Ratio was 0.33. The lowest was 0.16. And the median was 0.28.
TSCDF's Cash Ratio is ranked better than 51.16% of 303
companies
in the Retail - Defensive industry
Industry Median: 0.29
vs TSCDF: 0.29
Tesco (OTCPK:TSCDF) 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.
Tesco Cash Ratio Related Terms
Tesco Cash Ratio Historical Data
* Premium members only.
The historical data trend for Tesco'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.
For the Grocery Stores subindustry, Tesco'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.
Tesco Cash Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Tesco's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Tesco'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.
Tesco (TSCDF) has a Cash Ratio of 0.29 as of Feb. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Tesco and its competitors. This is near median its historical median of 0.28. Over the past decade, Tesco's Cash Ratio has ranged from 0.16 to 0.33. According to the industry distribution chart, Tesco ranks #148 out of 303 companies in the Retail - Defensive industry, placing it in the top 48.8%.
Is Tesco's Cash Ratio too high?
Tesco's current Cash Ratio of 0.29 is near median its 10-year median of 0.28. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 0.33. The Retail - Defensive industry median Cash Ratio is 0.29. Tesco's value of 0.29 is 0% at this industry median. Based on the distribution chart, Tesco ranks #148 out of 303 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Tesco has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesco's Cash Ratio compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Tesco ranks #148 out of 303 companies for Cash Ratio. This puts Tesco in the upper half of its industry. The industry median Cash Ratio is 0.29. Tesco's value of 0.29 is 0% at this benchmark. Historically, Tesco's own Cash Ratio has ranged from 0.16 to 0.33 over the past decade. While the company's 10-year median is 0.28 vs. the industry median of 0.29, Tesco has consistently been at the industry average. 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 Retail - Defensive company?
The median Cash Ratio among Retail - Defensive companies is 0.29, based on 303 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. Tesco's current Cash Ratio of 0.29 is 0% at 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 Tesco and its competitors. For the Retail - Defensive industry, the median Cash Ratio is 0.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tesco's current Cash Ratio is 0.29, which is near median its own 10-year median of 0.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tesco stock overvalued right now?
Based on GuruFocus' analysis, Tesco (TSCDF) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.48, compared to a current price of $6.29 — trading 14.8% above its estimated fair value. The current Cash Ratio is 0.29, which is near median its 10-year median of 0.28 and 0% at the Retail - Defensive industry median of 0.29. Tesco's overall GF Score™ is 78/100 with 4 warning signs to review. 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 Tesco (TSCDF), the current Cash Ratio is 0.29 as of Feb. 2026. 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.
Is Tesco (TSCDF) Overvalued in 2026?
Based on GuruFocus' analysis, Tesco stock appears to be overvalued.
The current stock price of $6.29 is trading 14.8% above its estimated GF Value™ of $5.48.
GuruFocus considers Tesco to be Modestly Overvalued.
Key valuation signals for TSCDF:
Cash Ratio: 0.29 (near median its 10-year median of 0.28)
GF Value™: $5.48 vs. price of $6.29 (14.8% above fair value)
Industry Position: 0% at the Retail - Defensive median (#148 of 303)
No single metric tells the full story. See the TSCDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tesco is a large food retailer, operating thousands of stores in the United Kingdom, Ireland, and Central Europe. The majority of Tesco's sales are from the UK, where the firm has over 24% market share, more than double the second-largest peer, Sainsbury's, according to Euromonitor. Tesco also holds 30% e-grocery market share in the UK, holding a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivery industries with the GBP 4 billion acquisition of Booker in 2018.
78GF Score
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