B/E Aerospace has a Cash Ratio of 0.24. 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 B/E Aerospace's Cash Ratio or its related term are showing as below:
BEAV's Cash Ratio is not ranked *
in the Aerospace & Defense industry.
Industry Median: 0.36 * Ranked among companies with meaningful Cash Ratio only.
B/E Aerospace Cash Ratio Historical Data
The historical data trend for B/E Aerospace'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 B/E Aerospace's Cash Ratio
For the Aerospace & Defense subindustry, B/E Aerospace'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.
B/E Aerospace's Cash Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, B/E Aerospace's Cash Ratio distribution charts can be found below:
* The bar in red indicates where B/E Aerospace's Cash Ratio falls into.
B/E Aerospace Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
B/E Aerospace's Cash Ratio for the fiscal year that ended in Dec. 2016 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.
B/E Aerospace (NAS:BEAV) 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.
B/E Aerospace Cash Ratio Related Terms
Thank you for viewing the detailed overview of B/E Aerospace's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
B/E Aerospace (B/E Aerospace) Business Description
B/E Aerospace Inc is a Delaware corporation incorporated in 1987. The Company manufactures aircraft cabin interior products. It designs, develops and manufactures products for both commercial aircrafts and business jets. It offers products including aircraft cabin seating, lighting systems, oxygen systems, food and beverage preparation and storage equipment, galley systems, and modular lavatory systems. It also provides cabin interior reconfiguration, program management and certification services. In addition, it also designs, engineers and manufactures customized and fully integrated thermal and power management solutions. The Company sells and supports its products through its direct sales and product support organization. The Company's operations are subject to changing federal, state and foreign laws and regulations establishing health and environmental quality standards, including those governing discharges of pollutants into the air and water and the management and disposal of hazardous substances and wastes.
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