ERJ (Embraer) Cash Ratio : 0.31 (As of Jun. 2024)

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What is Embraer 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. Embraer's Cash Ratio for the quarter that ended in Jun. 2024 was 0.31.

Embraer has a Cash Ratio of 0.31. 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 Embraer's Cash Ratio or its related term are showing as below:

ERJ' s Cash Ratio Range Over the Past 10 Years
Min: 0.2 Med: 0.79 Max: 1.3
Current: 0.31

During the past 13 years, Embraer's highest Cash Ratio was 1.30. The lowest was 0.20. And the median was 0.79.

ERJ's Cash Ratio is ranked worse than
53.09% of 307 companies
in the Aerospace & Defense industry
Industry Median: 0.33 vs ERJ: 0.31

Embraer Cash Ratio Historical Data

The historical data trend for Embraer'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.

* Premium members only.

Embraer Cash Ratio Chart

Embraer Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Ratio

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0.20

1.11

0.91

0.72

0.59

Embraer Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Dec23	Mar24	Jun24
Cash Ratio	Get a 7-Day Free Trial															0.59	-	0.59	0.38	0.31

Competitive Comparison of Embraer's Cash Ratio

For the Aerospace & Defense subindustry, Embraer'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.

Embraer's Cash Ratio Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Embraer's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Embraer's Cash Ratio falls into.

Embraer Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

Embraer'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
	=	2150.9	/	3665.6
	=	0.59

Embraer's Cash Ratio for the quarter that ended in Jun. 2024 is calculated as:

Cash Ratio (Q: Jun. 2024 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	1212.4	/	3878.1
	=	0.31

Embraer (NYSE:ERJ) 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.

Embraer Cash Ratio Related Terms

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Embraer Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Embraer SA (NYSE:ERJ) » Definitions » Cash Ratio

Comparable Companies

Traded in Other Exchanges

ERJ:Mexico EMY:Germany EMY:Germany EMY:Germany EMBR3:Brazil ERJ:Argentina

Address

Avenida Dra. Ruth Cardoso, 8501, 30th Floor, Pinheiros, SP, BRA, 05425-070

Website

https://ri.embraer.com.br

Embraer SA based in Sao Paulo, Brazil, manufacturer of jets. Its focus is to achieve customer satisfaction with and services addressing the commercial airline, executive jets, and defense and security markets. It has developed a customer-centric technology-driven portfolio of commercial aviation products and services that allows it to build long-term relationships with clients in the commercial aviation, executive jets, and defense and security markets. It operates through the following segments: Commercial Aviation; Defense and Security, Executive Aviation, Service and Support, and Other Segments. The company generates maximum revenue from the Commercial Aviation segment.