Ashirwad Steels & Industries has a Cash Ratio of 72.28. 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 Ashirwad Steels & Industries's Cash Ratio or its related term are showing as below:
BOM:526847'
s Cash Ratio Range Over the Past 10 Years
Min: 0.1 Med: 9.66 Max: 170.36
Current: 72.28
During the past 13 years, Ashirwad Steels & Industries's highest Cash Ratio was 170.36. The lowest was 0.10. And the median was 9.66.
BOM:526847's Cash Ratio is ranked better than 99.49% of 591
companies
in the Steel industry
Industry Median: 0.28
vs BOM:526847: 72.28
Ashirwad Steels & 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 Ashirwad Steels & Industries's Cash Ratio
For the Steel subindustry, Ashirwad Steels & 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.
Ashirwad Steels & Industries's Cash Ratio Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Ashirwad Steels & Industries's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Ashirwad Steels & Industries's Cash Ratio falls into.
Ashirwad Steels & 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.
Ashirwad Steels & Industries (BOM:526847) 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.
Ashirwad Steels & Industries Cash Ratio Related Terms
Thank you for viewing the detailed overview of Ashirwad Steels & Industries's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Ashirwad Steels & Industries (BOM:526847) Business Description
Ashirwad Steels & Industries Ltd is an Indian based company that operates in the sponge iron business. It is involved in the manufacturing of sponge iron using iron-ore and coal as the raw materials. The sponge iron is used as input by the steel melting shops to produce ingots and billets which are thereafter re-rolled by the rolling mills to produce end steel products like Rods, Bars, Plain Rounds, Angles, Flats, Channels, Girders and others. Geographically, the business activity is carried out through the region of India and derives revenue through the sale of products.
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