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. China Mobile's Cash Ratio for the quarter that ended in Dec. 2023 was 0.65.
China Mobile has a Cash Ratio of 0.65. 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 China Mobile's Cash Ratio or its related term are showing as below:
HKSE:00941'
s Cash Ratio Range Over the Past 10 Years
Min: 0.65 Med: 0.87 Max: 0.95
Current: 0.65
During the past 13 years, China Mobile's highest Cash Ratio was 0.95. The lowest was 0.65. And the median was 0.87.
HKSE:00941's Cash Ratio is ranked better than 71.98% of 389
companies
in the Telecommunication Services industry
Industry Median: 0.32
vs HKSE:00941: 0.65
China Mobile Cash Ratio Historical Data
The historical data trend for China Mobile'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 Telecom Services subindustry, China Mobile'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 Mobile Cash Ratio Distribution
For the Telecommunication Services industry and Communication Services sector, China Mobile's Cash Ratio distribution charts can be found below:
* The bar in red indicates where China Mobile's Cash Ratio falls into.
China Mobile 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 Mobile'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 Mobile (HKSE:00941) 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 Mobile Cash Ratio Related Terms
Thank you for viewing the detailed overview of China Mobile's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
China Mobile is not only the largest telecom operator in China by the number of mobile subscribers (990 million) but also the largest in the world. It has 60% of the total wireless market in China and 45% of the fixed-line broadband market. The firm is continuing to roll out its 5G network, having launched 5G service in late 2019. It is doing some 5G network sharing with China Broadnet at 700 MHz and also resells its 2G/4G/5G network through China Broadnet. Strong growth is being generated through internet data centers where it has the second-largest network in China and through Cloud Services. The company issued stock on the A-share market in 2022 and completed its first buyback of H-shares.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HKSE:00941 has been successfully added to your 