L'OrealXSWX:OR 99 Cash Ratio is 0.64 as of Dec. 2025, which is 106% above its 10-year median of 0.31. GuruFocus rates XSWX:OR with a GF Score™ of 99/100 and a GF Value™ of CHF366.59. The stock has 3 warning signs investors should review. Among 1,924 Consumer Packaged Goods companies, L'Oreal ranks better than 60.29% on this metric.
L'Oreal has a Cash Ratio of 0.64. 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 L'Oreal's Cash Ratio or its related term are showing as below:
XSWX:OR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.16 Med: 0.31 Max: 0.64
Current: 0.64
During the past 13 years, L'Oreal's highest Cash Ratio was 0.64. The lowest was 0.16. And the median was 0.31.
XSWX:OR's Cash Ratio is ranked better than 60.29% of 1924
companies
in the Consumer Packaged Goods industry
Industry Median: 0.4
vs XSWX:OR: 0.64
L'Oreal (XSWX:OR) 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.
L'Oreal Cash Ratio Related Terms
L'Oreal Cash Ratio Historical Data
* Premium members only.
The historical data trend for L'Oreal'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 Household & Personal Products subindustry, L'Oreal'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.
L'Oreal Cash Ratio vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, L'Oreal's Cash Ratio distribution charts can be found below:
* The bar in red indicates where L'Oreal'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.
L'Oreal (XSWX:OR) has a Cash Ratio of 0.64 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on L'Oreal and its competitors. This is 106% above median its historical median of 0.31. Over the past decade, L'Oreal's Cash Ratio has ranged from 0.16 to 0.64. According to the industry distribution chart, L'Oreal ranks #764 out of 1924 companies in the Consumer Packaged Goods industry, placing it in the top 39.7%.
Is L'Oreal's Cash Ratio too high?
L'Oreal's current Cash Ratio of 0.64 is 106% above median its 10-year median of 0.31. Over the past 10 years, this metric has ranged from a low of 0.16 to a high of 0.64. The Consumer Packaged Goods industry median Cash Ratio is 0.40. L'Oreal's value of 0.64 is 60% above this industry median. Based on the distribution chart, L'Oreal ranks #764 out of 1924 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, L'Oreal has a GF Score™ of 99/100, reflecting its overall financial health beyond just this single metric.
How does L'Oreal's Cash Ratio compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, L'Oreal ranks #764 out of 1924 companies for Cash Ratio. This puts L'Oreal in the upper half of its industry. The industry median Cash Ratio is 0.40. L'Oreal's value of 0.64 is 60% above this benchmark. Historically, L'Oreal's own Cash Ratio has ranged from 0.16 to 0.64 over the past decade. While the company's 10-year median is 0.31 vs. the industry median of 0.40, L'Oreal 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 Consumer Packaged Goods company?
The median Cash Ratio among Consumer Packaged Goods companies is 0.40, based on 1,924 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. L'Oreal's current Cash Ratio of 0.64 is 60% 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 L'Oreal and its competitors. For the Consumer Packaged Goods industry, the median Cash Ratio is 0.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L'Oreal's current Cash Ratio is 0.64, which is 106% above median its own 10-year median of 0.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L'Oreal stock overvalued right now?
L'Oreal (XSWX:OR) has a current Cash Ratio of 0.64. The stock's GF Value™ is CHF366.59, compared to a current price of CHF328.25 — trading 10.5% below its estimated fair value. The current Cash Ratio is 0.64, which is 106% above median its 10-year median of 0.31 and 60% above the Consumer Packaged Goods industry median of 0.40. L'Oreal's overall GF Score™ is 99/100 with 3 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 L'Oreal (XSWX:OR), the current Cash Ratio is 0.64 as of Dec. 2025. 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 L'Oreal (XSWX:OR) Overvalued in 2026?
Based on GuruFocus' analysis, L'Oreal stock appears to be undervalued.
The current stock price of CHF328.25 is trading 10.5% below its estimated GF Value™ of CHF366.59.
Key valuation signals for XSWX:OR:
Cash Ratio: 0.64 (106% above median its 10-year median of 0.31)
GF Value™: CHF366.59 vs. price of CHF328.25 (10.5% below fair value)
Industry Position: 60% above the Consumer Packaged Goods median (#764 of 1924)
No single metric tells the full story. See the XSWX:OR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L'Oréal is the largest beauty product maker in the world, with consumer products (37% of sales) and luxury beauty (35%) the major segments, followed by derma skin care (16%) and professional products (12%). The firm also has a diversified geographic footprint, generating 34% of sales in Europe, 27% from North America, 23% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oréal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancôme, Yves Saint Laurent, Maybelline, Kiehl's, L'Oréal Paris, Kerastase, CeraVe, Garnier, and Armani.
99GF Score
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