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. Herbalife's Cash Ratio for the quarter that ended in Dec. 2023 was 0.45.
Herbalife has a Cash Ratio of 0.45. 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 Herbalife's Cash Ratio or its related term are showing as below:
HLF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.45 Med: 0.81 Max: 1.41
Current: 0.45
During the past 13 years, Herbalife's highest Cash Ratio was 1.41. The lowest was 0.45. And the median was 0.81.
HLF's Cash Ratio is ranked better than 54.01% of 1844
companies
in the Consumer Packaged Goods industry
Industry Median: 0.39
vs HLF: 0.45
Herbalife Cash Ratio Historical Data
The historical data trend for Herbalife'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 Packaged Foods subindustry, Herbalife'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.
Herbalife's Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Herbalife's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Herbalife's Cash Ratio falls into.
Herbalife Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Herbalife'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.
Herbalife (NYSE:HLF) 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.
Herbalife Cash Ratio Related Terms
Thank you for viewing the detailed overview of Herbalife's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Herbalife Ltd is an international nutrition company that provides health and wellness products to consumers in 95 markets, which consists of countries and territories, through their direct-selling business model. Companies' products are weight management; targeted nutrition; Energy, Sports, and Fitness; Outer Nutrition and Literature, Promotional, and Other. Weight management generates the majority of revenue from products like Meal replacement, protein shakes, drink mixes, weight loss enhancers, and healthy snacks. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HLF has been successfully added to your 