Lumentum HoldingsXSWX:LITE1 61 Cash Ratio is 0.82 as of Mar. 2026, which is 72% below its 10-year median of 2.90. GuruFocus rates XSWX:LITE1 with a GF Score™ of 61/100 and a GF Value™ of CHF79.46. The stock has 4 warning signs investors should review. Among 2,476 Hardware companies, Lumentum Holdings ranks better than 58.97% on this metric.
Lumentum Holdings has a Cash Ratio of 0.82. 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 Lumentum Holdings's Cash Ratio or its related term are showing as below:
XSWX:LITE1'
s Cash Ratio Range Over the Past 10 Years
Min: 0.31 Med: 2.9 Max: 5.49
Current: 0.82
During the past 13 years, Lumentum Holdings's highest Cash Ratio was 5.49. The lowest was 0.31. And the median was 2.90.
XSWX:LITE1's Cash Ratio is ranked better than 58.97% of 2476
companies
in the Hardware industry
Industry Median: 0.64
vs XSWX:LITE1: 0.82
Lumentum Holdings (XSWX:LITE1) 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.
Lumentum Holdings Cash Ratio Related Terms
Lumentum Holdings Cash Ratio Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings'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 Communication Equipment subindustry, Lumentum Holdings'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.
Lumentum Holdings Cash Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings'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.
Lumentum Holdings (XSWX:LITE1) has a Cash Ratio of 0.82 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Lumentum Holdings and its competitors. This is 72% below median its historical median of 2.90. Over the past decade, Lumentum Holdings' Cash Ratio has ranged from 0.31 to 5.49. According to the industry distribution chart, Lumentum Holdings ranks #1016 out of 2476 companies in the Hardware industry, placing it in the top 41%.
Is Lumentum Holdings' Cash Ratio too high?
Lumentum Holdings' current Cash Ratio of 0.82 is 72% below median its 10-year median of 2.90. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 5.49. The Hardware industry median Cash Ratio is 0.64. Lumentum Holdings' value of 0.82 is 28.1% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #1016 out of 2476 companies in the Hardware industry, which is above the industry midpoint. Overall, Lumentum Holdings has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Cash Ratio compare to ?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #1016 out of 2476 companies for Cash Ratio. This puts Lumentum Holdings in the upper half of its industry. The industry median Cash Ratio is 0.64. Lumentum Holdings' value of 0.82 is 28.1% above this benchmark. Historically, Lumentum Holdings' own Cash Ratio has ranged from 0.31 to 5.49 over the past decade. While the company's 10-year median is 2.90 vs. the industry median of 0.64, Lumentum Holdings 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 Hardware company?
The median Cash Ratio among Hardware companies is 0.64, based on 2,476 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. Lumentum Holdings's current Cash Ratio of 0.82 is 28.1% 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 Lumentum Holdings and its competitors. For the Hardware industry, the median Cash Ratio is 0.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Cash Ratio is 0.82, which is 72% below median its own 10-year median of 2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumentum Holdings stock overvalued right now?
Lumentum Holdings (XSWX:LITE1) has a current Cash Ratio of 0.82. The stock's GF Value™ is CHF79.46, compared to a current price of CHF604.50 — trading 660.8% above its estimated fair value. The current Cash Ratio is 0.82, which is 72% below median its 10-year median of 2.90 and 28.1% above the Hardware industry median of 0.64. Lumentum Holdings' overall GF Score™ is 61/100 with 4 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 Lumentum Holdings (XSWX:LITE1), the current Cash Ratio is 0.82 as of Mar. 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 Lumentum Holdings (XSWX:LITE1) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of CHF604.50 is trading 660.8% above its estimated GF Value™ of CHF79.46.
Key valuation signals for XSWX:LITE1:
Cash Ratio: 0.82 (72% below median its 10-year median of 2.90)
GF Value™: CHF79.46 vs. price of CHF604.50 (660.8% above fair value)
Industry Position: 28.1% above the Hardware median (#1016 of 2476)
No single metric tells the full story. See the XSWX:LITE1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.
61GF Score
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