Sumitomo Bakelite Co has a Cash Ratio of 1.22. 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 Sumitomo Bakelite Co's Cash Ratio or its related term are showing as below:
TSE:4203'
s Cash Ratio Range Over the Past 10 Years
Min: 0.39 Med: 0.94 Max: 1.31
Current: 1.22
During the past 13 years, Sumitomo Bakelite Co's highest Cash Ratio was 1.31. The lowest was 0.39. And the median was 0.94.
TSE:4203's Cash Ratio is ranked better than 72.24% of 1549
companies
in the Chemicals industry
Industry Median: 0.53
vs TSE:4203: 1.22
Sumitomo Bakelite Co Cash Ratio Historical Data
The historical data trend for Sumitomo Bakelite Co'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.
Competitive Comparison of Sumitomo Bakelite Co's Cash Ratio
For the Specialty Chemicals subindustry, Sumitomo Bakelite Co'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.
Sumitomo Bakelite Co's Cash Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sumitomo Bakelite Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Sumitomo Bakelite Co's Cash Ratio falls into.
Sumitomo Bakelite Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Sumitomo Bakelite Co'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.
Sumitomo Bakelite Co (TSE:4203) 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.
Sumitomo Bakelite Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of Sumitomo Bakelite Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sumitomo Bakelite Co (TSE:4203) Business Description
Sumitomo Bakelite Co Ltd manufactures and sells plastics and chemical-based products. The firm's three segments are based on product type. The high-performance plastics segment, which generates more revenue than any other segment, sells phenolic molding compounds and phenolic resins used to make the interiors of aerospace and automotive vehicles. The quality-of-life segment sells medical-device products including endoscopic, surgery, drainage, and circulation devices. The semiconductor materials segment sells epoxy resin molding compounds and liquid resins used for semiconductor encapsulation in smartphones and other consumer electronic devices. The majority of revenue comes from Asia.
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