Wisconsin Electric Power Co has a Cash Ratio of 0.18. 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 Wisconsin Electric Power Co's Cash Ratio or its related term are showing as below:
WELPM.PFD's Cash Ratio is not ranked *
in the Utilities - Regulated industry.
Industry Median: 0.33 * Ranked among companies with meaningful Cash Ratio only.
Wisconsin Electric Power Co 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 Wisconsin Electric Power Co's Cash Ratio
For the Utilities - Regulated Electric subindustry, Wisconsin Electric Power 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.
Wisconsin Electric Power Co's Cash Ratio Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Wisconsin Electric Power Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Wisconsin Electric Power Co's Cash Ratio falls into.
Wisconsin Electric Power Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Wisconsin Electric Power Co (OTCPK:WELPM.PFD) 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.
Wisconsin Electric Power Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Wisconsin Electric Power Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Wisconsin Electric Power Co is an electric utility company. The business activity of the group is functioned through electric and natural gas utility operations. Its electric utility operations are engaged in the generation, distribution, and sale of electricity in southeastern, east central, and northern Wisconsin. The electric utility operations also include steam operations which produce, distribute, and sell steam to space heating and processing customers in metropolitan Milwaukee, Wisconsin. Its natural gas utility operations are engaged in the purchase, distribution, and sale of natural gas to retail customers and the transportation natural gas in three service areas within southeastern, east central, and northern Wisconsin.
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