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. ELMO Software's Cash Ratio for the quarter that ended in Jun. 2022 was 0.44.
ELMO Software has a Cash Ratio of 0.44. 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 ELMO Software's Cash Ratio or its related term are showing as below:
ASX:ELO's Cash Ratio is not ranked *
in the Software industry.
Industry Median: 0.78 * Ranked among companies with meaningful Cash Ratio only.
ELMO Software Cash Ratio Historical Data
The historical data trend for ELMO Software'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 Software - Application subindustry, ELMO Software'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.
ELMO Software Cash Ratio Distribution
For the Software industry and Technology sector, ELMO Software's Cash Ratio distribution charts can be found below:
* The bar in red indicates where ELMO Software's Cash Ratio falls into.
ELMO Software Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
ELMO Software's Cash Ratio for the fiscal year that ended in Jun. 2022 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.
ELMO Software (ASX:ELO) 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.
ELMO Software Cash Ratio Related Terms
Thank you for viewing the detailed overview of ELMO Software's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ELMO Software Ltd provides Software-as-a-Service (SaaS), cloud-based Human Resources (HR), payroll and expense management solutions. The business operates in two segments, mid-market through the ELMO platform, and small business through the Breathe platform. The company develops, sells, and implements a range of modular software applications to manage human resource-related processes; recruitment, onboarding, performance management, learning and development, succession planning, and others. It also provides HR core, a software module for people management, and employee self-service.ELMO has business operations in Australia, New Zealand and the United Kingdom. Geographically, Australia contributes to the majority of total revenue.
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