Allison Transmission Holdings has a Cash Ratio of 1.11. 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 Allison Transmission Holdings's Cash Ratio or its related term are showing as below:
ALSN'
s Cash Ratio Range Over the Past 10 Years
Min: 0.28 Med: 0.57 Max: 1.11
Current: 1.11
During the past 13 years, Allison Transmission Holdings's highest Cash Ratio was 1.11. The lowest was 0.28. And the median was 0.57.
ALSN's Cash Ratio is ranked better than 80.98% of 1283
companies
in the Vehicles & Parts industry
Industry Median: 0.36
vs ALSN: 1.11
Allison Transmission 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 Allison Transmission Holdings's Cash Ratio
For the Auto Parts subindustry, Allison Transmission 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.
Allison Transmission Holdings's Cash Ratio Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Allison Transmission Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Allison Transmission Holdings's Cash Ratio falls into.
Allison Transmission 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.
* 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.
Allison Transmission Holdings (NYSE:ALSN) 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.
Allison Transmission Holdings Cash Ratio Related Terms
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Allison Transmission Holdings (Allison Transmission Holdings) Business Description
Allison Transmission is the largest manufacturer of fully automatic transmissions for commercial vehicles. The company's automatic transmissions allow customers to achieve better fuel and operator efficiency than less expensive manual and automated manual transmissions. Allison serves several end markets, including on- and off-highway equipment and military vehicles. Its on-highway business has approximately 60% global market share. The company's transmissions can be found in Class 4 through Class 8 trucks, buses, and a limited number of large passenger vehicles (heavy-duty pickup trucks and motor homes). Allison also produces electric hybrid propulsion systems and is developing e-powertrains.
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