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. ADF Group's Cash Ratio for the quarter that ended in Jan. 2024 was 0.69.
ADF Group has a Cash Ratio of 0.69. 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 ADF Group's Cash Ratio or its related term are showing as below:
ADFJF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.11 Max: 0.69
Current: 0.69
During the past 13 years, ADF Group's highest Cash Ratio was 0.69. The lowest was 0.01. And the median was 0.11.
ADFJF's Cash Ratio is ranked better than 59.32% of 2979
companies
in the Industrial Products industry
Industry Median: 0.52
vs ADFJF: 0.69
ADF Group Cash Ratio Historical Data
The historical data trend for ADF Group'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.
ADF Group Annual Data
Trend
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Jan24
Cash Ratio
0.08
0.29
0.14
0.08
0.69
ADF Group Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Cash Ratio
0.08
0.52
0.54
0.45
0.69
Competitive Comparison
For the Metal Fabrication subindustry, ADF Group'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.
ADF Group Cash Ratio Distribution
For the Industrial Products industry and Industrials sector, ADF Group's Cash Ratio distribution charts can be found below:
* The bar in red indicates where ADF Group's Cash Ratio falls into.
ADF Group Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
ADF Group's Cash Ratio for the fiscal year that ended in Jan. 2024 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.
ADF Group (OTCPK:ADFJF) 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.
ADF Group Cash Ratio Related Terms
Thank you for viewing the detailed overview of ADF Group's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ADF Group Inc involves in the design and engineering of connections, fabrication, including industrial coating, and the installation of steel structures and steel built-ups, as well as miscellaneous and architectural metalwork. The company's products and services are intended for the five principal segments of the non-residential construction industry: Office towers and high-rises, Commercial and recreational buildings, Airport facilities, Industrial complexes, and Transport infrastructures. It serves the client base in the non-residential construction industry, such as general contractors, project owners, engineering firms and project architects, and other steel structure fabricators. The company operates in the United States and Canada.
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