Applied Digital has a Cash Ratio of 1.70. 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 Applied Digital's Cash Ratio or its related term are showing as below:
XSWX:APLD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.23 Max: 5.81
Current: 1.7
During the past 13 years, Applied Digital's highest Cash Ratio was 5.81. The lowest was 0.01. And the median was 0.23.
XSWX:APLD's Cash Ratio is ranked better than 73.02% of 2806
companies
in the Software industry
Industry Median: 0.79
vs XSWX:APLD: 1.70
Applied Digital (XSWX:APLD) 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.
Applied Digital Cash Ratio Related Terms
Applied Digital Cash Ratio Historical Data
* Premium members only.
The historical data trend for Applied Digital'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 Information Technology Services subindustry, Applied Digital'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.
Applied Digital Cash Ratio vs Software Industry
For the Software industry and Technology sector, Applied Digital's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Applied Digital'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.
Applied Digital (XSWX:APLD) has a Cash Ratio of 1.70 as of Feb. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Applied Digital and its competitors. This is 639% above median its historical median of 0.23. Over the past decade, Applied Digital's Cash Ratio has ranged from 0.01 to 5.81. According to the industry distribution chart, Applied Digital ranks #757 out of 2806 companies in the Software industry, placing it in the top 27%.
Is Applied Digital's Cash Ratio too high?
Applied Digital's current Cash Ratio of 1.70 is 639% above median its 10-year median of 0.23. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 5.81. The Software industry median Cash Ratio is 0.79. Applied Digital's value of 1.70 is 115.2% above this industry median. Based on the distribution chart, Applied Digital ranks #757 out of 2806 companies in the Software industry, which is above the industry midpoint. Overall, Applied Digital has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Cash Ratio compare to ?
According to the Software industry distribution chart, Applied Digital ranks #757 out of 2806 companies for Cash Ratio. This puts Applied Digital in the upper half of its industry. The industry median Cash Ratio is 0.79. Applied Digital's value of 1.70 is 115.2% above this benchmark. Historically, Applied Digital's own Cash Ratio has ranged from 0.01 to 5.81 over the past decade. While the company's 10-year median is 0.23 vs. the industry median of 0.79, Applied Digital 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 Software company?
The median Cash Ratio among Software companies is 0.79, based on 2,806 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. Applied Digital's current Cash Ratio of 1.70 is 115.2% 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 Applied Digital and its competitors. For the Software industry, the median Cash Ratio is 0.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current Cash Ratio is 1.70, which is 639% above median its own 10-year median of 0.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Cash Ratio of 1.70. The stock's GF Value™ is CHF11.40, compared to a current price of CHF27.30 — trading 139.5% above its estimated fair value. The current Cash Ratio is 1.70, which is 639% above median its 10-year median of 0.23 and 115.2% above the Software industry median of 0.79. Applied Digital's overall GF Score™ is 38/100 with 7 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 Applied Digital (XSWX:APLD), the current Cash Ratio is 1.70 as of Feb. 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 Applied Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF27.30 is trading 139.5% above its estimated GF Value™ of CHF11.40.
Key valuation signals for XSWX:APLD:
Cash Ratio: 1.70 (639% above median its 10-year median of 0.23)
GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
Industry Position: 115.2% above the Software median (#757 of 2806)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
38GF Score
Get the complete analysis for XSWX:APLD
Cash Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:APLD has been successfully added to your 
