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Nippon RADTSE:4736 +1.72%65 Cash Ratio is 2.87 as of Jun. 2026, which is 26% below its 10-year median of 3.86. GuruFocus rates TSE:4736 with a GF Score™ of 65/100 and a GF Value™ of 円722.24 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,817 Software companies, Nippon RAD ranks better than 84.84% on this metric.
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 RAD Cash Ratio Related Terms
Nippon RAD Cash Ratio Historical Data
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The historical data trend for Nippon RAD'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 Information Technology Services subindustry, Nippon RAD'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 RAD Cash Ratio vs Software Industry
For the Software industry and Technology sector, Nippon RAD's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Nippon RAD'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.
Nippon RAD (TSE:4736) has a Cash Ratio of 2.87 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Nippon RAD and its competitors. This is 26% below median its historical median of 3.86. Over the past decade, Nippon RAD's Cash Ratio has ranged from 2.20 to 6.27. According to the industry distribution chart, Nippon RAD ranks #427 out of 2817 companies in the Software industry, placing it in the top 15.2%.
Is Nippon RAD's Cash Ratio too high?
Nippon RAD's current Cash Ratio of 2.87 is 26% below median its 10-year median of 3.86. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 6.27. The Software industry median Cash Ratio is 0.76. Nippon RAD's value of 2.87 is 277.6% above this industry median. Based on the distribution chart, Nippon RAD ranks #427 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Nippon RAD has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nippon RAD's Cash Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Nippon RAD ranks #427 out of 2817 companies for Cash Ratio. This places Nippon RAD in the top 15% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.76. Nippon RAD's value of 2.87 is 277.6% above this benchmark. Historically, Nippon RAD's own Cash Ratio has ranged from 2.20 to 6.27 over the past decade. While the company's 10-year median is 3.86 vs. the industry median of 0.76, Nippon RAD has consistently been above 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 Software company?
The median Cash Ratio among Software companies is 0.76, based on 2,817 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 RAD's current Cash Ratio of 2.87 is 277.6% 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 Nippon RAD and its competitors. For the Software industry, the median Cash Ratio is 0.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon RAD's current Cash Ratio is 2.87, which is 26% below median its own 10-year median of 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon RAD stock overvalued right now?
Based on GuruFocus' analysis, Nippon RAD (TSE:4736) is currently considered Modestly Undervalued. The stock's GF Value™ is 円722.24, compared to a current price of 円590.00 — trading 18.3% below its estimated fair value. The current Cash Ratio is 2.87, which is 26% below median its 10-year median of 3.86 and 277.6% above the Software industry median of 0.76. Nippon RAD's overall GF Score™ is 65/100 with 2 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 RAD (TSE:4736), the current Cash Ratio is 2.87 as of Jun. 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 RAD (TSE:4736) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon RAD stock appears to be undervalued.
The current stock price of 円590.00 is trading 18.3% below its estimated GF Value™ of 円722.24.
GuruFocus considers Nippon RAD to be Modestly Undervalued.
Key valuation signals for TSE:4736:
Cash Ratio: 2.87 (26% below median its 10-year median of 3.86)
GF Value™: 円722.24 vs. price of 円590.00 (18.3% below fair value)
Industry Position: 277.6% above the Software median (#427 of 2817)
No single metric tells the full story. See the TSE:4736 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon RAD Inc is engaged in the development of systems and software for various industries and operations. The solutions of the company include the GW system, card operation system, risk management system, vehicle management system, risk management system, and others.
65GF Score
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