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Sophia Holdings CoTSE:6942 52 Cash Ratio is 0.77 as of Jun. 2026, which is at its 10-year median of 0.77. GuruFocus rates TSE:6942 with a GF Score™ of 52/100 and a GF Value™ of 円929.47 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,817 Software companies, Sophia Holdings Co ranks better than 50.69% on this metric.
Sophia Holdings Co has a Cash Ratio of 0.77. 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 Sophia Holdings Co's Cash Ratio or its related term are showing as below:
TSE:6942'
s Cash Ratio Range Over the Past 10 Years
Min: 0.39 Med: 0.77 Max: 1.07
Current: 0.77
During the past 13 years, Sophia Holdings Co's highest Cash Ratio was 1.07. The lowest was 0.39. And the median was 0.77.
TSE:6942's Cash Ratio is ranked better than 50.69% of 2817
companies
in the Software industry
Industry Median: 0.75
vs TSE:6942: 0.77
Sophia Holdings Co (TSE:6942) 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.
Sophia Holdings Co Cash Ratio Related Terms
Sophia Holdings Co Cash Ratio Historical Data
* Premium members only.
The historical data trend for Sophia Holdings Co'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, Sophia Holdings 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.
Sophia Holdings Co Cash Ratio vs Software Industry
For the Software industry and Technology sector, Sophia Holdings Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Sophia Holdings Co'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.
Sophia Holdings Co (TSE:6942) has a Cash Ratio of 0.77 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Sophia Holdings Co and its competitors. This is near median its historical median of 0.77. Over the past decade, Sophia Holdings Co's Cash Ratio has ranged from 0.39 to 1.07. According to the industry distribution chart, Sophia Holdings Co ranks #1389 out of 2817 companies in the Software industry, placing it in the top 49.3%.
Is Sophia Holdings Co's Cash Ratio too high?
Sophia Holdings Co's current Cash Ratio of 0.77 is near median its 10-year median of 0.77. Over the past 10 years, this metric has ranged from a low of 0.39 to a high of 1.07. The Software industry median Cash Ratio is 0.75. Sophia Holdings Co's value of 0.77 is 2.7% above this industry median. Based on the distribution chart, Sophia Holdings Co ranks #1389 out of 2817 companies in the Software industry, which is above the industry midpoint. Overall, Sophia Holdings Co has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sophia Holdings Co's Cash Ratio compare to IBM and ACN?
According to the Software industry distribution chart, Sophia Holdings Co ranks #1389 out of 2817 companies for Cash Ratio. This puts Sophia Holdings Co in the upper half of its industry. The industry median Cash Ratio is 0.75. Sophia Holdings Co's value of 0.77 is 2.7% above this benchmark. Historically, Sophia Holdings Co's own Cash Ratio has ranged from 0.39 to 1.07 over the past decade. While the company's 10-year median is 0.77 vs. the industry median of 0.75, Sophia Holdings Co 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 0.75, 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. Sophia Holdings Co's current Cash Ratio of 0.77 is 2.7% 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 Sophia Holdings Co and its competitors. For the Software industry, the median Cash Ratio is 0.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sophia Holdings Co's current Cash Ratio is 0.77, which is near median its own 10-year median of 0.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sophia Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Sophia Holdings Co (TSE:6942) is currently considered Significantly Overvalued. The stock's GF Value™ is 円929.47, compared to a current price of 円1,443.00 — trading 55.2% above its estimated fair value. The current Cash Ratio is 0.77, which is near median its 10-year median of 0.77 and 2.7% above the Software industry median of 0.75. Sophia Holdings Co's overall GF Score™ is 52/100 with 6 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 Sophia Holdings Co (TSE:6942), the current Cash Ratio is 0.77 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 Sophia Holdings Co (TSE:6942) Overvalued in 2026?
Based on GuruFocus' analysis, Sophia Holdings Co stock appears to be overvalued.
The current stock price of 円1,443.00 is trading 55.2% above its estimated GF Value™ of 円929.47.
GuruFocus considers Sophia Holdings Co to be Significantly Overvalued.
Key valuation signals for TSE:6942:
Cash Ratio: 0.77 (near median its 10-year median of 0.77)
GF Value™: 円929.47 vs. price of 円1,443.00 (55.2% above fair value)
Industry Position: 2.7% above the Software median (#1389 of 2817)
No single metric tells the full story. See the TSE:6942 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sophia Holdings Co Ltd is a Japanese holding company whose subsidiaries provide information technology and systems services. Its core business is the planning, design, development, and contracting of web and network systems, along with related consulting. The group offers solutions spanning data centers, hardware, software, digital content, and business applications, serving corporate clients in Japan. Beyond its main systems-integration operations, Sophia Holdings has diversified into areas including communications, healthcare, real estate, security, and hosting services. Revenue is generated primarily through IT solution development and systems integration contracts, supplemented by fees from these ancillary businesses. The company operates mainly within the Japanese market and is listed on the Tokyo Stock Exchange.
52GF Score
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