Grounds Real Estate Development AG has a Cash Ratio of 0.02. 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.
* 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.
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Grounds Real Estate Development AG Cash Ratio Chart
Competitive Comparison of Grounds Real Estate Development AG's Cash Ratio
For the Real Estate Services subindustry, Grounds Real Estate Development AG'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.
Grounds Real Estate Development AG's Cash Ratio Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Grounds Real Estate Development AG's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Grounds Real Estate Development AG'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.
Grounds Real Estate Development AG (FRA:AMM) 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.
Grounds Real Estate Development AG Cash Ratio Related Terms
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Grounds Real Estate Development AG Business Description
Grounds Real Estate Development AG carries out housing projects in German metropolitan regions and urban areas. Its business activities cover three core areas such as the company is planning to establish its property portfolio for long-term rental income, which is referred to as the portfolio management business. They also aim to develop the existing properties and sell them as part-ownership, known as the privatization business. Additionally, they plan to construct new housing and sell it to institutional investors, capital investors, and owner-occupiers. This is referred to as the project development business. The group's primary sources of income are the construction work on project developments, privatization income and rental income from existing properties.
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