Australian Agricultural Co has a Cash Ratio of 0.09. 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 Australian Agricultural Co's Cash Ratio or its related term are showing as below:
ASX:AAC'
s Cash Ratio Range Over the Past 10 Years
Min: 0.07 Med: 0.24 Max: 1.39
Current: 0.09
During the past 13 years, Australian Agricultural Co's highest Cash Ratio was 1.39. The lowest was 0.07. And the median was 0.24.
ASX:AAC's Cash Ratio is ranked worse than 80.31% of 1844
companies
in the Consumer Packaged Goods industry
Industry Median: 0.39
vs ASX:AAC: 0.09
Australian Agricultural Co 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 Australian Agricultural Co's Cash Ratio
For the Farm Products subindustry, Australian Agricultural Co'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.
Australian Agricultural Co's Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Australian Agricultural Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Australian Agricultural Co's Cash Ratio falls into.
Australian Agricultural Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Australian Agricultural Co (ASX:AAC) 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.
Australian Agricultural Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Australian Agricultural Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Australian Agricultural Co (ASX:AAC) Business Description
Australian Agricultural Co Ltd raises cattle in Australia to process and export all over the world. It specializes in grass-fed beef, grain-fed beef, and a Japanese-style beef. The company invests in research and technologies to ensure high quality and enhance productivity. The technologies may focus on performance evaluations, feed efficiency, or disease testing. More opportunities for gathering data exist because the cattle are owned throughout the entire supply chain. The company's processing facility works to get the beef out on a timely basis and will turn to third parties in times of a shortage. The company distributes the beef by tailoring its route-to-market model to capitalize on regional opportunities.
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