US Foods Holding has a Cash Ratio of 0.09. 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 US Foods Holding's Cash Ratio or its related term are showing as below:
USFD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.08 Max: 0.42
Current: 0.09
During the past 12 years, US Foods Holding's highest Cash Ratio was 0.42. The lowest was 0.04. And the median was 0.08.
USFD's Cash Ratio is ranked worse than 81.58% of 304
companies
in the Retail - Defensive industry
Industry Median: 0.28
vs USFD: 0.09
US Foods Holding Cash Ratio Historical Data
The historical data trend for US Foods Holding'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 US Foods Holding's Cash Ratio
For the Food Distribution subindustry, US Foods Holding'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.
US Foods Holding's Cash Ratio Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Cash Ratio distribution charts can be found below:
* The bar in red indicates where US Foods Holding's Cash Ratio falls into.
US Foods Holding Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
US Foods Holding'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.
US Foods Holding (NYSE:USFD) 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.
US Foods Holding Cash Ratio Related Terms
Thank you for viewing the detailed overview of US Foods Holding's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
US Foods Holding (US Foods Holding) Business Description
us Foods is the second-largest U.S. food service distributor behind Sysco, holding 11% market share of the highly fragmented food service distribution industry. us Foods distributes more than 400,000 food and nonfood products to the healthcare and hospitality industries (collectively 22% of 2021 sales), restaurants (61%), and education, government facilities, and grocers (17%). In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. After Sysco's attempt to purchase us Foods failed to gain federal approval in 2015, us Foods entered the public market via an initial public offering.
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