Playa Hotels & Resorts NV has a Cash Ratio of 1.25. 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 Playa Hotels & Resorts NV's Cash Ratio or its related term are showing as below:
PLYA'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 1.11 Max: 1.81
Current: 1.25
During the past 9 years, Playa Hotels & Resorts NV's highest Cash Ratio was 1.81. The lowest was 0.04. And the median was 1.11.
PLYA's Cash Ratio is ranked better than 74.91% of 813
companies
in the Travel & Leisure industry
Industry Median: 0.57
vs PLYA: 1.25
Playa Hotels & Resorts NV 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 Playa Hotels & Resorts NV's Cash Ratio
For the Resorts & Casinos subindustry, Playa Hotels & Resorts NV'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.
Playa Hotels & Resorts NV's Cash Ratio Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Playa Hotels & Resorts NV's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Playa Hotels & Resorts NV's Cash Ratio falls into.
Playa Hotels & Resorts NV Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Playa Hotels & Resorts NV'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.
Playa Hotels & Resorts NV (NAS:PLYA) 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.
Playa Hotels & Resorts NV Cash Ratio Related Terms
Thank you for viewing the detailed overview of Playa Hotels & Resorts NV's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Playa Hotels & Resorts NV acts as an owner, operator, and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean. The company's segments are Yucatan Peninsula, Pacific Coast, Dominican Republic, and Jamaica. It generates a majority of its revenue from the Yucatan Peninsula segment. Its brand profile consists of HYATT ZIVA, HYATT ZILARA, Hilton, JEWEL RESORTS, and others.
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