Kirloskar Ferrous Industries has a Cash Ratio of 0.03. 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 Kirloskar Ferrous Industries's Cash Ratio or its related term are showing as below:
BOM:500245'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.03 Max: 0.04
Current: 0.03
During the past 13 years, Kirloskar Ferrous Industries's highest Cash Ratio was 0.04. The lowest was 0.01. And the median was 0.03.
BOM:500245's Cash Ratio is ranked worse than 96.14% of 2981
companies
in the Industrial Products industry
Industry Median: 0.54
vs BOM:500245: 0.03
Kirloskar Ferrous Industries 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 Kirloskar Ferrous Industries's Cash Ratio
For the Metal Fabrication subindustry, Kirloskar Ferrous Industries'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.
Kirloskar Ferrous Industries's Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kirloskar Ferrous Industries's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Kirloskar Ferrous Industries's Cash Ratio falls into.
Kirloskar Ferrous Industries Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Kirloskar Ferrous Industries (BOM:500245) 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.
Kirloskar Ferrous Industries Cash Ratio Related Terms
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Kirloskar Ferrous Industries (BOM:500245) Business Description
Kirloskar Ferrous Industries Ltd is an India-based company that is engaged in manufacturing pig iron and gray iron castings. The Company's pig iron and casting products are used in various industries, such as automotive engineering, infrastructure and construction, agriculture, manufacturing, textile mills and steel industries. Its manufacturing plants are located in Bevinahalli village in Koppal district of Karnataka state and Solapur district of Maharashtra state. Its segments include Casting, Tube, and Steel of which it generates the majority of its revenue from the Casting segment.
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