The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Cash Converters International's Cash Ratio for the quarter that ended in Dec. 2023 was 0.33.
Cash Converters International has a Cash Ratio of 0.33. 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 Cash Converters International's Cash Ratio or its related term are showing as below:
ASX:CCV'
s Cash Ratio Range Over the Past 10 Years
Min: 0.27 Med: 0.66 Max: 1.17
Current: 0.33
During the past 13 years, Cash Converters International's highest Cash Ratio was 1.17. The lowest was 0.27. And the median was 0.66.
ASX:CCV's Cash Ratio is ranked worse than 53.52% of 1095
companies
in the Retail - Cyclical industry
Industry Median: 0.38
vs ASX:CCV: 0.33
Cash Converters International Cash Ratio Historical Data
The historical data trend for Cash Converters International'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 Specialty Retail subindustry, Cash Converters International'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.
Cash Converters International Cash Ratio Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Cash Converters International's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Cash Converters International's Cash Ratio falls into.
Cash Converters International Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Cash Converters International's Cash Ratio for the fiscal year that ended in Jun. 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.
Cash Converters International (ASX:CCV) 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.
Cash Converters International Cash Ratio Related Terms
Thank you for viewing the detailed overview of Cash Converters International's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Cash Converters International (ASX:CCV) Business Description
Cash Converters International Ltd is a franchised retail network that specializes in the sale of second-hand goods. It operates through three business segments. Store Operations segment, which is the key revenue driver, involves the retail sale of new and second-hand goods, cash advance, and pawnbroking operations. Personal Finance segment comprises the Cash Converters Personal Finance personal loans business. The vehicle Financing segment comprises Green Light Auto Group, which provides motor vehicle finance. It operates in two geographical areas Australia and the United Kingdom. The company generates the majority of its revenue from the Personal finance segment.
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