Headwaters (Headwaters) Cash Ratio : 0.47 (As of Mar. 2017)

Headwaters Cash Ratio Chart

Headwaters Annual Data
	Trend	Sep07	Sep08	Sep09	Sep10	Sep11	Sep12	Sep13	Sep14	Sep15	Sep16
Cash Ratio		Get a 7-Day Free Trial					0.38	0.51	1.12	1.07	0.44

Headwaters Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Cash Ratio	Get a 7-Day Free Trial															0.51	0.64	0.44	0.60	0.47

Competitive Comparison of Headwaters's Cash Ratio

For the Building Materials subindustry, Headwaters'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.

Headwaters's Cash Ratio Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Headwaters's Cash Ratio distribution charts can be found below:

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

Headwaters Cash Ratio Calculation

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

Headwaters's Cash Ratio for the fiscal year that ended in Sep. 2016 is calculated as:

Headwaters's Cash Ratio for the quarter that ended in Mar. 2017 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.

Headwaters  (NYSE:HW) 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.

Headwaters Cash Ratio Related Terms

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Headwaters (Headwaters) Business Description