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. Lynch Group Holdings's Cash Ratio for the quarter that ended in Dec. 2023 was 0.32.
Lynch Group Holdings has a Cash Ratio of 0.32. 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 Lynch Group Holdings's Cash Ratio or its related term are showing as below:
ASX:LGL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.21 Med: 0.48 Max: 0.7
Current: 0.32
During the past 3 years, Lynch Group Holdings's highest Cash Ratio was 0.70. The lowest was 0.21. And the median was 0.48.
ASX:LGL's Cash Ratio is ranked worse than 54.29% of 1842
companies
in the Consumer Packaged Goods industry
Industry Median: 0.39
vs ASX:LGL: 0.32
Lynch Group Holdings Cash Ratio Historical Data
The historical data trend for Lynch Group Holdings'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.
* Premium members only.
Lynch Group Holdings Annual Data
Trend
Jun21
Jun22
Jun23
Cash Ratio
0.70
0.50
0.56
Lynch Group Holdings Semi-Annual Data
Dec20
Jun21
Dec21
Jun22
Dec22
Jun23
Dec23
Cash Ratio
0.48
0.50
0.21
0.56
0.32
Competitive Comparison
For the Farm Products subindustry, Lynch Group Holdings'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.
Lynch Group Holdings Cash Ratio Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lynch Group Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Lynch Group Holdings's Cash Ratio falls into.
Lynch Group Holdings Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Lynch Group Holdings'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.
Lynch Group Holdings (ASX:LGL) 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.
Lynch Group Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of Lynch Group Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lynch Group Holdings (ASX:LGL) Business Description
Lynch Group Holdings Ltd is a vertically integrated wholesale floral company whose farms cover the entire process of planting, growing, merchandising, and selling flowers and potted plants to major supermarket chains and commercial outlets throughout Australia and China. The Group is organized into two operating segments Australia, which operates a vertically integrated production farm and wholesale operation in Australia; and China segment, which segment operates a production farm and distribution operation in China, primarily supplying the domestic China market as well as the Australian segment. The company generates the majority of its revenue from the Australia segment.
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