Applied Optoelectronics has a Cash Ratio of 0.49. 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 Applied Optoelectronics's Cash Ratio or its related term are showing as below:
AAOI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.18 Med: 0.58 Max: 1.17
Current: 0.49
During the past 13 years, Applied Optoelectronics's highest Cash Ratio was 1.17. The lowest was 0.18. And the median was 0.58.
AAOI's Cash Ratio is ranked worse than 60.06% of 2466
companies
in the Hardware industry
Industry Median: 0.66
vs AAOI: 0.49
Applied Optoelectronics 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 Applied Optoelectronics's Cash Ratio
For the Communication Equipment subindustry, Applied Optoelectronics'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 Optoelectronics's Cash Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Applied Optoelectronics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Applied Optoelectronics's Cash Ratio falls into.
Applied Optoelectronics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Applied Optoelectronics's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* 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 Optoelectronics (NAS:AAOI) 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 Optoelectronics Cash Ratio Related Terms
Thank you for viewing the detailed overview of Applied Optoelectronics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Applied Optoelectronics (Applied Optoelectronics) Business Description
Applied Optoelectronics Inc is a provider of fiber-optic networking products for the Internet data center, cable television, telecommunications and fiber-to-the-home end markets. The company focuses on designing and manufacturing a range of optical communication products from components, to subassemblies, and modules to complete turn-key equipment. Demand for Applied Optoelectronics is driven by bandwidth demand in end markets. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AAOI has been successfully added to your 