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. Dr Reddy's Laboratories's Cash Ratio for the quarter that ended in Dec. 2023 was 0.77.
Dr Reddy's Laboratories has a Cash Ratio of 0.77. 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 Dr Reddy's Laboratories's Cash Ratio or its related term are showing as below:
RDY'
s Cash Ratio Range Over the Past 10 Years
Min: 0.21 Med: 0.41 Max: 0.81
Current: 0.77
During the past 13 years, Dr Reddy's Laboratories's highest Cash Ratio was 0.81. The lowest was 0.21. And the median was 0.41.
RDY's Cash Ratio is ranked better than 57.7% of 1026
companies
in the Drug Manufacturers industry
Industry Median: 0.58
vs RDY: 0.77
Dr Reddy's Laboratories Cash Ratio Historical Data
The historical data trend for Dr Reddy's Laboratories'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 Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories'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.
Dr Reddy's Laboratories Cash Ratio Distribution
For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Dr Reddy's Laboratories's Cash Ratio falls into.
Dr Reddy's Laboratories Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Dr Reddy's Laboratories's Cash Ratio for the fiscal year that ended in Mar. 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.
Dr Reddy's Laboratories (NYSE:RDY) 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.
Dr Reddy's Laboratories Cash Ratio Related Terms
Thank you for viewing the detailed overview of Dr Reddy's Laboratories's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Dr Reddy's Laboratories (Dr Reddy's Laboratories) Business Description
Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly half of its generics sales, and it services India (22% of its generics sales), Russia (12%), and certain European and Latin American countries. Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.
Dr Reddy's Laboratories (Dr Reddy's Laboratories) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RDY has been successfully added to your 