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. New Hope's Cash Ratio for the quarter that ended in Jan. 2024 was 2.08.
New Hope has a Cash Ratio of 2.08. 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 New Hope's Cash Ratio or its related term are showing as below:
NHPEF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.27 Med: 1.89 Max: 15.58
Current: 2.08
During the past 13 years, New Hope's highest Cash Ratio was 15.58. The lowest was 0.27. And the median was 1.89.
NHPEF's Cash Ratio is ranked better than 68.97% of 174
companies
in the Other Energy Sources industry
Industry Median: 0.79
vs NHPEF: 2.08
New Hope Cash Ratio Historical Data
The historical data trend for New Hope'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 Thermal Coal subindustry, New Hope'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.
New Hope Cash Ratio Distribution
For the Other Energy Sources industry and Energy sector, New Hope's Cash Ratio distribution charts can be found below:
* The bar in red indicates where New Hope's Cash Ratio falls into.
New Hope Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
New Hope's Cash Ratio for the fiscal year that ended in Jul. 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.
New Hope (OTCPK:NHPEF) 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.
New Hope Cash Ratio Related Terms
Thank you for viewing the detailed overview of New Hope's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
New Hope Corporation is an Australian thermal coal miner. It has two operating mines: the 100%-owned New Acland coal mine in Queensland and its 80%-owned Bengalla coal mine in New South Wales. The company should produce around 13 million metric tons of equity salable thermal coal annually from fiscal 2027, up from around 8 million in fiscal 2023, driven by the construction and ramp up of New Acland Stage 3. The vast majority of New Hope's production is sold into seaborne thermal coal export markets. Reserves at New Acland and Bengalla are sufficient to support multidecade mine lives. New Hope also has significant undeveloped coal resources in Queensland, as well as a 15% holding in the Malabar-Maxwell metallurgical coal mine, which began production in 2023.
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