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Nippon Hotel & Residential Investment has a Cash Ratio of 0.26. 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.
Nippon Hotel & Residential Investment (TSE:3472) 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.
Nippon Hotel & Residential Investment Cash Ratio Related Terms
Nippon Hotel & Residential Investment 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.
Nippon Hotel & Residential Investment Cash Ratio Chart
For the REIT - Hotel & Motel subindustry, Nippon Hotel & Residential Investment'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.
Nippon Hotel & Residential Investment Cash Ratio vs REITs Industry
* 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.
Nippon Hotel & Residential Investment (TSE:3472) has a Cash Ratio of 0.26 as of May. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Nippon Hotel & Residential Investment and its competitors. This is 13% below median its historical median of 0.30. Over the past decade, Nippon Hotel & Residential Investment's Cash Ratio has ranged from 0.16 to 1.62. According to the industry distribution chart, Nippon Hotel & Residential Investment ranks #415 out of 718 companies in the REITs industry, placing it in the top 57.8%.
Is Nippon Hotel & Residential Investment's Cash Ratio too high?
Nippon Hotel & Residential Investment's current Cash Ratio of 0.26 is 13% below median its 10-year median of 0.30. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 1.62. The REITs industry median Cash Ratio is 0.35. Nippon Hotel & Residential Investment's value of 0.26 is 25.7% below this industry median. Based on the distribution chart, Nippon Hotel & Residential Investment ranks #415 out of 718 companies in the REITs industry, which is below the industry midpoint. Overall, Nippon Hotel & Residential Investment has a GF Score™ of 53/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Hotel & Residential Investment's Cash Ratio compare to HST and RHP?
According to the REITs industry distribution chart, Nippon Hotel & Residential Investment ranks #415 out of 718 companies for Cash Ratio. This places Nippon Hotel & Residential Investment in the lower half of its industry. The industry median Cash Ratio is 0.35. Nippon Hotel & Residential Investment's value of 0.26 is 25.7% below this benchmark. Historically, Nippon Hotel & Residential Investment's own Cash Ratio has ranged from 0.16 to 1.62 over the past decade. While the company's 10-year median is 0.30 vs. the industry median of 0.35, Nippon Hotel & Residential Investment has consistently been below 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 REITs company?
The median Cash Ratio among REITs companies is 0.35, based on 718 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. Nippon Hotel & Residential Investment's current Cash Ratio of 0.26 is 25.7% below 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 Nippon Hotel & Residential Investment and its competitors. For the REITs industry, the median Cash Ratio is 0.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Hotel & Residential Investment's current Cash Ratio is 0.26, which is 13% below median its own 10-year median of 0.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Hotel & Residential Investment stock overvalued right now?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment (TSE:3472) is currently considered Modestly Undervalued. The stock's GF Value™ is 円86,317.01, compared to a current price of 円65,600.00 — trading 24% below its estimated fair value. The current Cash Ratio is 0.26, which is 13% below median its 10-year median of 0.30 and 25.7% below the REITs industry median of 0.35. Nippon Hotel & Residential Investment's overall GF Score™ is 53/100 with 5 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 Nippon Hotel & Residential Investment (TSE:3472), the current Cash Ratio is 0.26 as of May. 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 Nippon Hotel & Residential Investment (TSE:3472) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Hotel & Residential Investment stock appears to be undervalued.
The current stock price of 円65,600.00 is trading 24% below its estimated GF Value™ of 円86,317.01.
GuruFocus considers Nippon Hotel & Residential Investment to be Modestly Undervalued.
Key valuation signals for TSE:3472:
Cash Ratio: 0.26 (13% below median its 10-year median of 0.30)
GF Value™: 円86,317.01 vs. price of 円65,600.00 (24% below fair value)
Industry Position: 25.7% below the REITs median (#415 of 718)
No single metric tells the full story. See the TSE:3472 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Hotel & Residential Investment Corp is a real estate investment trust. The firm invests in onsen and spa-related facilities, and Accomodation. The company principally invests in hot spring-related industries, such as hotels, hot spring facilities and theme parks.
53GF Score
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