China Rare Earth Holdings has a Cash Ratio of 11.93. 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 China Rare Earth Holdings's Cash Ratio or its related term are showing as below:
FRA:RAE'
s Cash Ratio Range Over the Past 10 Years
Min: 5.57 Med: 10.99 Max: 11.93
Current: 11.93
During the past 13 years, China Rare Earth Holdings's highest Cash Ratio was 11.93. The lowest was 5.57. And the median was 10.99.
FRA:RAE's Cash Ratio is ranked better than 87.38% of 2599
companies
in the Metals & Mining industry
Industry Median: 1.27
vs FRA:RAE: 11.93
China Rare Earth 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 China Rare Earth Holdings's Cash Ratio
For the Other Industrial Metals & Mining subindustry, China Rare Earth 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.
China Rare Earth Holdings's Cash Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, China Rare Earth Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where China Rare Earth Holdings's Cash Ratio falls into.
China Rare Earth 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.
China Rare Earth Holdings's Cash Ratio for the fiscal year that ended in Dec. 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.
China Rare Earth Holdings (FRA:RAE) 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.
China Rare Earth Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of China Rare Earth Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
China Rare Earth Holdings (FRA:RAE) Business Description
China Rare Earth Holdings Ltd is an investment holding company. It operates in two segments: Rare earth and Refractory. The Rare earth segment includes manufacturing and sales of rare earth products such as praseodymium, neodymium, terbium, and dysprosium through trading. It also focuses on the production of high-end products such as rare earth oxides. The Refractory segment includes the manufacturing and sales of refractory products, including Refractory materials and Magnesium grains. The majority of its revenue comes from Rare Earth Segment. Its geographical segments are China, Japan, Europe, and Others, of which China accounts for the vast majority of its revenue.
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