Newcrest Mining has a Cash Ratio of 0.66. 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 Newcrest Mining's Cash Ratio or its related term are showing as below:
TSX:NCM'
s Cash Ratio Range Over the Past 10 Years
Min: 0.08 Med: 0.73 Max: 2.09
Current: 0.66
During the past 13 years, Newcrest Mining's highest Cash Ratio was 2.09. The lowest was 0.08. And the median was 0.73.
TSX:NCM's Cash Ratio is not ranked
in the Metals & Mining industry.
Industry Median: 1.255
vs TSX:NCM: 0.66
Newcrest Mining Cash Ratio Historical Data
The historical data trend for Newcrest Mining'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.
Competitive Comparison of Newcrest Mining's Cash Ratio
For the Gold subindustry, Newcrest Mining'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.
Newcrest Mining's Cash Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Newcrest Mining's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Newcrest Mining's Cash Ratio falls into.
Newcrest Mining Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Newcrest Mining's Cash Ratio for the fiscal year that ended in Jun. 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.
Newcrest Mining (TSX:NCM) 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.
Newcrest Mining Cash Ratio Related Terms
Thank you for viewing the detailed overview of Newcrest Mining's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Newcrest is an Australia-based gold and, to a lesser extent, copper miner. Operations are mainly in Australia and Papua New Guinea. The company also owns a 32% stake in the Fruta Del Norte gold mine in Ecuador, while the acquisition of Brucejack in 2022 adds to its 70% stake in the Red Chris mine in Canada. The company is likely to produce around 2 million ounces of gold per year over the next decade, making it one of the larger global gold producers but still only accounting for less than 2% of total supply. Cash costs are below the industry average, underpinned by improvements at Lihir and Cadia. Organic growth options include its Havieron prospect, the Red Chris underground mine, and the high-grade Wafi-Golpu copper-gold prospect in PNG.
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