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. IG Group Holdings's Cash Ratio for the quarter that ended in Nov. 2023 was 1.32.
IG Group Holdings has a Cash Ratio of 1.32. 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 IG Group Holdings's Cash Ratio or its related term are showing as below:
LSE:IGG'
s Cash Ratio Range Over the Past 10 Years
Min: 1.2 Med: 1.83 Max: 13.79
Current: 1.32
During the past 13 years, IG Group Holdings's highest Cash Ratio was 13.79. The lowest was 1.20. And the median was 1.83.
LSE:IGG's Cash Ratio is ranked better than 60.86% of 654
companies
in the Capital Markets industry
Industry Median: 0.885
vs LSE:IGG: 1.32
IG Group Holdings Cash Ratio Historical Data
The historical data trend for IG 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.
Competitive Comparison of IG Group Holdings's Cash Ratio
For the Capital Markets subindustry, IG 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.
IG Group Holdings's Cash Ratio Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, IG Group Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where IG Group Holdings's Cash Ratio falls into.
IG 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.
IG Group Holdings's Cash Ratio for the fiscal year that ended in May. 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.
IG Group Holdings (LSE:IGG) 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.
IG Group Holdings Cash Ratio Related Terms
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IG Group Holdings PLC provides online trading services to its clients. The majority of the company's revenue stems from its derivative products and contracts for difference (CFDs). The company operates through various segments which are The U.K. segment which derives its revenue from financial spread bets, CFDs, binary options, and execution-only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The European segment derives its revenue from CFDs, binary options, and execution-only stockbroking. The Rest of the World segment derives its revenue from the operation of a regulated futures and options exchange as well as CFDs and binary options. The company generates more than half of its revenue from the U.K., followed by Europe and Australia.
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