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Diversified RoyaltyTSX:DIV -2.16%85 Cash Ratio is 2.44 as of Mar. 2026, which is 2% below its 10-year median of 2.48. GuruFocus rates TSX:DIV with a GF Score™ of 85/100 and a GF Value™ of C$3.76 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 1,064 Business Services companies, Diversified Royalty ranks better than 84.49% on this metric.
Diversified Royalty has a Cash Ratio of 2.44. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Diversified Royalty's Cash Ratio or its related term are showing as below:
TSX:DIV'
s Cash Ratio Range Over the Past 10 Years
Min: 0.15 Med: 2.48 Max: 104.01
Current: 2.44
During the past 13 years, Diversified Royalty's highest Cash Ratio was 104.01. The lowest was 0.15. And the median was 2.48.
TSX:DIV's Cash Ratio is ranked better than 84.49% of 1064
companies
in the Business Services industry
Industry Median: 0.63
vs TSX:DIV: 2.44
Diversified Royalty (TSX:DIV) 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.
Diversified Royalty Cash Ratio Related Terms
Diversified Royalty Cash Ratio Historical Data
* Premium members only.
The historical data trend for Diversified Royalty'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 Specialty Business Services subindustry, Diversified Royalty'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.
Diversified Royalty Cash Ratio vs Business Services Industry
For the Business Services industry and Industrials sector, Diversified Royalty's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Diversified Royalty'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.
Diversified Royalty (TSX:DIV) has a Cash Ratio of 2.44 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Diversified Royalty and its competitors. This is near median its historical median of 2.48. Over the past decade, Diversified Royalty's Cash Ratio has ranged from 0.15 to 104.01. According to the industry distribution chart, Diversified Royalty ranks #165 out of 1064 companies in the Business Services industry, placing it in the top 15.5%.
Is Diversified Royalty's Cash Ratio too high?
Diversified Royalty's current Cash Ratio of 2.44 is near median its 10-year median of 2.48. Over the past 10 years, this metric has ranged from a low of 0.15 to a high of 104.01. The Business Services industry median Cash Ratio is 0.63. Diversified Royalty's value of 2.44 is 287.3% above this industry median. Based on the distribution chart, Diversified Royalty ranks #165 out of 1064 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Diversified Royalty has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diversified Royalty's Cash Ratio compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Diversified Royalty ranks #165 out of 1064 companies for Cash Ratio. This places Diversified Royalty in the top 16% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.63. Diversified Royalty's value of 2.44 is 287.3% above this benchmark. Historically, Diversified Royalty's own Cash Ratio has ranged from 0.15 to 104.01 over the past decade. While the company's 10-year median is 2.48 vs. the industry median of 0.63, Diversified Royalty 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 Business Services company?
The median Cash Ratio among Business Services companies is 0.63, based on 1,064 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. Diversified Royalty's current Cash Ratio of 2.44 is 287.3% 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 Diversified Royalty and its competitors. For the Business Services industry, the median Cash Ratio is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diversified Royalty's current Cash Ratio is 2.44, which is near median its own 10-year median of 2.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diversified Royalty stock overvalued right now?
Based on GuruFocus' analysis, Diversified Royalty (TSX:DIV) is currently considered Modestly Overvalued. The stock's GF Value™ is C$3.76, compared to a current price of C$4.54 — trading 20.7% above its estimated fair value. The current Cash Ratio is 2.44, which is near median its 10-year median of 2.48 and 287.3% above the Business Services industry median of 0.63. Diversified Royalty's overall GF Score™ is 85/100 with 11 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 Diversified Royalty (TSX:DIV), the current Cash Ratio is 2.44 as of Mar. 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 Diversified Royalty (TSX:DIV) Overvalued in 2026?
Based on GuruFocus' analysis, Diversified Royalty stock appears to be overvalued.
The current stock price of C$4.54 is trading 20.7% above its estimated GF Value™ of C$3.76.
GuruFocus considers Diversified Royalty to be Modestly Overvalued.
Key valuation signals for TSX:DIV:
Cash Ratio: 2.44 (near median its 10-year median of 2.48)
GF Value™: C$3.76 vs. price of C$4.54 (20.7% above fair value)
Industry Position: 287.3% above the Business Services median (#165 of 1064)
No single metric tells the full story. See the TSX:DIV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The firm purchases trademarks of the companies it is going to acquire. Its objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. All of the company's operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.
85GF Score
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