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Muromachi ChemicalsTSE:4885 -0.44%75 Cash Ratio is 0.79 as of May. 2026, which is 80% above its 10-year median of 0.44. GuruFocus rates TSE:4885 with a GF Score™ of 75/100 and a GF Value™ of 円993.22 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,580 Chemicals companies, Muromachi Chemicals ranks better than 64.81% on this metric.
Muromachi Chemicals has a Cash Ratio of 0.79. 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 Muromachi Chemicals's Cash Ratio or its related term are showing as below:
TSE:4885'
s Cash Ratio Range Over the Past 10 Years
Min: 0.26 Med: 0.44 Max: 0.79
Current: 0.79
During the past 8 years, Muromachi Chemicals's highest Cash Ratio was 0.79. The lowest was 0.26. And the median was 0.44.
TSE:4885's Cash Ratio is ranked better than 64.81% of 1580
companies
in the Chemicals industry
Industry Median: 0.51
vs TSE:4885: 0.79
Muromachi Chemicals (TSE:4885) 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.
Muromachi Chemicals Cash Ratio Related Terms
Muromachi Chemicals Cash Ratio Historical Data
* Premium members only.
The historical data trend for Muromachi Chemicals'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 Chemicals subindustry, Muromachi Chemicals'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.
Muromachi Chemicals Cash Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Muromachi Chemicals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Muromachi Chemicals'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.
Muromachi Chemicals (TSE:4885) has a Cash Ratio of 0.79 as of May. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Muromachi Chemicals and its competitors. This is 80% above median its historical median of 0.44. Over the past decade, Muromachi Chemicals' Cash Ratio has ranged from 0.26 to 0.79. According to the industry distribution chart, Muromachi Chemicals ranks #556 out of 1580 companies in the Chemicals industry, placing it in the top 35.2%.
Is Muromachi Chemicals' Cash Ratio too high?
Muromachi Chemicals' current Cash Ratio of 0.79 is 80% above median its 10-year median of 0.44. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 0.79. The Chemicals industry median Cash Ratio is 0.51. Muromachi Chemicals' value of 0.79 is 54.9% above this industry median. Based on the distribution chart, Muromachi Chemicals ranks #556 out of 1580 companies in the Chemicals industry, which is above the industry midpoint. Overall, Muromachi Chemicals has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muromachi Chemicals' Cash Ratio compare to DOW?
According to the Chemicals industry distribution chart, Muromachi Chemicals ranks #556 out of 1580 companies for Cash Ratio. This puts Muromachi Chemicals in the upper half of its industry. The industry median Cash Ratio is 0.51. Muromachi Chemicals' value of 0.79 is 54.9% above this benchmark. Historically, Muromachi Chemicals' own Cash Ratio has ranged from 0.26 to 0.79 over the past decade. While the company's 10-year median is 0.44 vs. the industry median of 0.51, Muromachi Chemicals 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 Chemicals company?
The median Cash Ratio among Chemicals companies is 0.51, based on 1,580 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. Muromachi Chemicals's current Cash Ratio of 0.79 is 54.9% 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 Muromachi Chemicals and its competitors. For the Chemicals industry, the median Cash Ratio is 0.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muromachi Chemicals's current Cash Ratio is 0.79, which is 80% above median its own 10-year median of 0.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muromachi Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Muromachi Chemicals (TSE:4885) is currently considered Fairly Valued. The stock's GF Value™ is 円993.22, compared to a current price of 円900.00 — trading 9.4% below its estimated fair value. The current Cash Ratio is 0.79, which is 80% above median its 10-year median of 0.44 and 54.9% above the Chemicals industry median of 0.51. Muromachi Chemicals' overall GF Score™ is 75/100 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 Muromachi Chemicals (TSE:4885), the current Cash Ratio is 0.79 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 Muromachi Chemicals (TSE:4885) Overvalued in 2026?
Based on GuruFocus' analysis, Muromachi Chemicals stock appears to be undervalued.
The current stock price of 円900.00 is trading 9.4% below its estimated GF Value™ of 円993.22.
GuruFocus considers Muromachi Chemicals to be Fairly Valued.
Key valuation signals for TSE:4885:
Cash Ratio: 0.79 (80% above median its 10-year median of 0.44)
GF Value™: 円993.22 vs. price of 円900.00 (9.4% below fair value)
Industry Position: 54.9% above the Chemicals median (#556 of 1580)
No single metric tells the full story. See the TSE:4885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muromachi Chemicals Inc is engaged in the production and distribution of pharmaceuticals, planning, production, and distribution of health foods, and distribution and processing of ion-exchange resin products. The Company has three reportable segments based on business type: Pharmaceuticals Business, Health Food Business, and Chemicals Business.
75GF Score
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