Martinrea International has a Cash Ratio of 0.14. 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 Martinrea International's Cash Ratio or its related term are showing as below:
TSX:MRE'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.1 Max: 0.19
Current: 0.14
During the past 13 years, Martinrea International's highest Cash Ratio was 0.19. The lowest was 0.01. And the median was 0.10.
TSX:MRE's Cash Ratio is ranked worse than 73.13% of 1299
companies
in the Vehicles & Parts industry
Industry Median: 0.36
vs TSX:MRE: 0.14
Martinrea International 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.
Competitive Comparison of Martinrea International's Cash Ratio
For the Auto Parts subindustry, Martinrea International'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.
Martinrea International's Cash Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Martinrea International's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Martinrea International's Cash Ratio falls into.
Martinrea International Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Martinrea International's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* 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.
Martinrea International (TSX:MRE) 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.
Martinrea International Cash Ratio Related Terms
Thank you for viewing the detailed overview of Martinrea International's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Martinrea International Inc is a diversified and world-wide automotive supplier engaged in the design, development and manufacturing of engineered, value-added Lightweight Structures and Propulsion Systems. Its products are used in the automotive sector by the majority of vehicle manufacturers. The Company's offerings include products, assemblies and systems for small and large cars, crossovers, pickups and sport utility vehicles. The company also provides metal forming and welding solutions. The company operates in North America, Europe and Rest of the World.
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