Ventia Services Group (ASX:VNT) Cash Ratio : 0.27 (As of Dec. 2023)

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What is Ventia Services Group Cash Ratio?

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. Ventia Services Group's Cash Ratio for the quarter that ended in Dec. 2023 was 0.27.

Ventia Services Group has a Cash Ratio of 0.27. 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 Ventia Services Group's Cash Ratio or its related term are showing as below:

ASX:VNT' s Cash Ratio Range Over the Past 10 Years
Min: 0.16 Med: 0.22 Max: 0.27
Current: 0.27

During the past 3 years, Ventia Services Group's highest Cash Ratio was 0.27. The lowest was 0.16. And the median was 0.22.

ASX:VNT's Cash Ratio is ranked worse than
56% of 1666 companies
in the Construction industry
Industry Median: 0.32 vs ASX:VNT: 0.27

Ventia Services Group Cash Ratio Historical Data

The historical data trend for Ventia Services 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.

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Ventia Services Group Cash Ratio Chart

Ventia Services Group Annual Data

Trend

Dec21

Dec22

Dec23

Cash Ratio

0.16

0.22

0.27

Ventia Services Group Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Ratio	0.16	0.18	0.22	0.24	0.27

Competitive Comparison of Ventia Services Group's Cash Ratio

For the Infrastructure Operations subindustry, Ventia Services 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.

Ventia Services Group's Cash Ratio Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ventia Services Group's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Ventia Services Group's Cash Ratio falls into.

Ventia Services 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.

Ventia Services Group's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash Ratio (A: Dec. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	338.7	/	1239.2
	=	0.27

Ventia Services Group's Cash Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash Ratio (Q: Dec. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	338.7	/	1239.2
	=	0.27

Ventia Services Group (ASX:VNT) 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.

Ventia Services Group Cash Ratio Related Terms

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Ventia Services Group (ASX:VNT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Ventia Services Group Ltd (ASX:VNT) » Definitions » Cash Ratio

Traded in Other Exchanges

VNT:New Zealand

Address

80 Pacific Highway, Level 8, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ventia.com

While Ventia is not the largest player with an estimated 7.5% share of addressable markets, it is a leading infrastructure maintenance services provider in Australia and New Zealand. Its capabilities span the full asset lifecycle including operations and maintenance, facilities management, minor capital works, environmental services, and other solutions. And its business model is favorably capital-light via flexing of a large contractor base complementing a deep pool of talented employees. Ventia has long-term relationships with a diverse range of public and private sector clients with many client relationships maintained for decades. Contracts are favorably long with an average five-year duration at inception and most containing some form of embedded price escalation.