Premium Brands Holdings has a Cash Ratio of 0.04. 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 Premium Brands Holdings's Cash Ratio or its related term are showing as below:
TSX:PBH'
s Cash Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.06 Max: 0.74
Current: 0.04
During the past 13 years, Premium Brands Holdings's highest Cash Ratio was 0.74. The lowest was 0.02. And the median was 0.06.
TSX:PBH's Cash Ratio is ranked worse than 88.83% of 1844
companies
in the Consumer Packaged Goods industry
Industry Median: 0.39
vs TSX:PBH: 0.04
Premium Brands Holdings Cash Ratio Historical Data
* 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 Premium Brands Holdings's Cash Ratio
For the Packaged Foods subindustry, Premium Brands Holdings'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.
Premium Brands Holdings's Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Premium Brands Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Premium Brands Holdings's Cash Ratio falls into.
Premium Brands Holdings Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Premium Brands Holdings'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.
Premium Brands Holdings (TSX:PBH) 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.
Premium Brands Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of Premium Brands Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Premium Brands Holdings (TSX:PBH) Business Description
Premium Brands Holdings Corp is engaged in specialty food manufacturing, premium food distribution, and wholesale businesses with operations in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nevada, and Washington State. The company's business segments include Specialty Foods, Premium Food Distribution, and Corporate. The Specialty Foods segment consists of its specialty food manufacturing businesses, which contributes about two-thirds of the group revenue; the Premium Food Distribution segment consists of the company's distribution and wholesale businesses; the Corporate segment includes the company's head office activities along with its finance and information systems. Its geographical segments are the United States and Canada.
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