Hitachi Construction Machinery Co has a Cash Ratio of 0.24. 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.
TSE:6305'
s Cash Ratio Range Over the Past 10 Years
Min: 0.2 Med: 0.24 Max: 0.34
Current: 0.24
During the past 13 years, Hitachi Construction Machinery Co's highest Cash Ratio was 0.34. The lowest was 0.20. And the median was 0.24.
TSE:6305's Cash Ratio is ranked worse than 60.89% of 202
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 0.335
vs TSE:6305: 0.24
Hitachi Construction Machinery Co 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.
* Premium members only.
Hitachi Construction Machinery Co Cash Ratio Chart
Competitive Comparison of Hitachi Construction Machinery Co's Cash Ratio
For the Farm & Heavy Construction Machinery subindustry, Hitachi Construction Machinery 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.
Hitachi Construction Machinery Co's Cash Ratio Distribution in the Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Hitachi Construction Machinery Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Hitachi Construction Machinery Co's Cash Ratio falls into.
Hitachi Construction Machinery 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.
* 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.
Hitachi Construction Machinery Co (TSE:6305) 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.
Hitachi Construction Machinery Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Hitachi Construction Machinery Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hitachi Construction Machinery Co (TSE:6305) Business Description
Hitachi Construction Machinery, or HCM, manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining/construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.4% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo, Japan.
Hitachi Construction Machinery Co (TSE:6305) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:6305 has been successfully added to your 