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. NIC's Cash Ratio for the quarter that ended in Dec. 2020 was 1.50.
NIC has a Cash Ratio of 1.50. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for NIC's Cash Ratio or its related term are showing as below:
FRA:NAI's Cash Ratio is not ranked *
in the Software industry.
Industry Median: 0.775 * Ranked among companies with meaningful Cash Ratio only.
NIC Cash Ratio Historical Data
The historical data trend for NIC'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, NIC'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.
NIC's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, NIC's Cash Ratio distribution charts can be found below:
* The bar in red indicates where NIC's Cash Ratio falls into.
NIC Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
NIC's Cash Ratio for the fiscal year that ended in Dec. 2020 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.
NIC (FRA:NAI) 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.
NIC Cash Ratio Related Terms
Thank you for viewing the detailed overview of NIC's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
NIC Inc is a leading provider of digital government services that help governments use technology to provide a higher level of service to businesses and citizens and increase efficiencies. The company has two operating channels: state enterprise businesses and software and services businesses. In State enterprise businesses, the company enters into long-term contracts with state and local governments to design, build and operate Internet-based, enterprise-wide portals on their behalf, the software and services businesses provide software development and payment processing services, other than outsourced portal services, to state and local governments as well as federal agencies. It generates a majority of its revenue from the State Enterprise.
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