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MercadoLibre (NAS:MELI) Cash Ratio

: 0.35 (As of Dec. 2022)
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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. MercadoLibre's Cash Ratio for the quarter that ended in Dec. 2022 was 0.35.

MercadoLibre has a Cash Ratio of 0.35. 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 MercadoLibre's Cash Ratio or its related term are showing as below:

MELI' s Cash Ratio Range Over the Past 10 Years
Min: 0.35   Med: 0.92   Max: 1.7
Current: 0.35

During the past 13 years, MercadoLibre's highest Cash Ratio was 1.70. The lowest was 0.35. And the median was 0.92.

MELI's Cash Ratio is ranked worse than
54.11% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 0.39 vs MELI: 0.35

MercadoLibre Cash Ratio Historical Data

The historical data trend for MercadoLibre'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.

* Premium members only.

MercadoLibre Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cash Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.77 1.70 0.68 0.48 0.35

MercadoLibre Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Cash Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.48 0.33 0.33 0.34 0.35

Competitive Comparison

For the Internet Retail subindustry, MercadoLibre'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.

   

MercadoLibre Cash Ratio Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Cash Ratio distribution charts can be found below:

* The bar in red indicates where MercadoLibre's Cash Ratio falls in comparison to its industry or sector. The grey bar indicates the Cash Ratio's extreme value range as defined by GuruFocus.



MercadoLibre Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

MercadoLibre's Cash Ratio for the fiscal year that ended in Dec. 2022 is calculated as:

Cash Ratio (A: Dec. 2022 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=3030/8562
=0.35

MercadoLibre's Cash Ratio for the quarter that ended in Dec. 2022 is calculated as:

Cash Ratio (Q: Dec. 2022 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=3030/8562
=0.35

* 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.


MercadoLibre  (NAS:MELI) 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.


MercadoLibre Cash Ratio Related Terms

Thank you for viewing the detailed overview of MercadoLibre's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


MercadoLibre (NAS:MELI) Business Description

MercadoLibre logo
Address
WTC Free Zone, Dr. Luis Bonavita 1294, Of. 1733, Tower II, Montevideo, URY, 11300
MercadoLibre runs the largest e-commerce marketplace in Latin America, connecting a network of more than 140 million active users and 1 million active sellers as of the end of 2021 across an 18-country footprint. The company also operates a host of complementary businesses, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
Executives
Petroni Merhy Andrea Mayumi director HOUSE B, 32 STANLEY VILLAGE ROAD, STANLEY K3 000000
De La Serna Juan Martin officer: Executive VP Corporate Affairs AV. PTE. PERON 2375, LOTE MN04, PILAR, BUENOS AIRES C1 1629
Richard A Sanders director 80 PALL MALL, LONDON X0 SW1Y 5ES
Ariel Szarfsztejn officer: Executive VP - Commerce POSTA 4789, 6TH FLOOR, BUENOS AIRES C1 C1430CRG
Henrique Vasoncelos Dubugras director 1000 LAUREL WAY, BEVERLY HILLS CA 90210
Meyer Malka director C/O MERCADOLIBRE, INC., ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1C1430CRG
Roberto Balls Sallouti director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1 C1430CRG
Emiliano Calemzuk director C/O MERCADOLIBRE, INC., TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN
Alejandro Nicolas Aguzin director ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Javier Olivan director 62 RIDGE VIEW DRIVE, ATHERTON X1 94027
Susan Segal director
Pedro Arnt officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
Daniel Rabinovich officer: VP-Chief Technology Officer ARIAS 3751, 7TH FLOOR, BUENOS AIRES C1 C1430CRG
Marcelo Melamud officer: V. P. Chief Accounting Officer TRONADOR 4890, 8TH FLOOR, BUENOS AIRES C1 C1430DNN

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