Peter Warren Automotive Holdings has a Cash Ratio of 0.04. 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 Peter Warren Automotive Holdings's Cash Ratio or its related term are showing as below:
ASX:PWR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.11 Max: 0.15
Current: 0.04
During the past 3 years, Peter Warren Automotive Holdings's highest Cash Ratio was 0.15. The lowest was 0.04. And the median was 0.11.
ASX:PWR's Cash Ratio is ranked worse than 90.76% of 1288
companies
in the Vehicles & Parts industry
Industry Median: 0.36
vs ASX:PWR: 0.04
Peter Warren Automotive Holdings 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 Peter Warren Automotive Holdings's Cash Ratio
For the Auto & Truck Dealerships subindustry, Peter Warren Automotive 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.
Peter Warren Automotive Holdings's Cash Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Peter Warren Automotive Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Peter Warren Automotive Holdings's Cash Ratio falls into.
Peter Warren Automotive 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.
* 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.
Peter Warren Automotive Holdings (ASX:PWR) 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.
Peter Warren Automotive Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of Peter Warren Automotive Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Peter Warren Automotive Holdings (ASX:PWR) Business Description
Peter Warren Automotive Holdings Ltd is a dealership group operating in Australia. The company operates an integrated new and used car retailing business providing the full range of sales and support including parts, service, finance and insurance and aftermarket products to an extensive list of long-term customers, many of whom have purchased multiple vehicles over a life time. The company has two operating segments Vehicle Retailing and property segment, The company generates the majority of its revenue from the Vehicle Retailing segment, which offers a diversified range of automotive products and services, including new vehicles, used vehicles, vehicle maintenance and repair services, vehicle parts, extended service contracts, vehicle protection products, and other aftermarket products.
Peter Warren Automotive Holdings (ASX:PWR) Headlines
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