Liquidity Services has a Cash Ratio of 1.00. 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 Liquidity Services's Cash Ratio or its related term are showing as below:
LQDT'
s Cash Ratio Range Over the Past 10 Years
Min: 0.56 Med: 1 Max: 1.75
Current: 1
During the past 13 years, Liquidity Services's highest Cash Ratio was 1.75. The lowest was 0.56. And the median was 1.00.
LQDT's Cash Ratio is ranked better than 77.22% of 1093
companies
in the Retail - Cyclical industry
Industry Median: 0.37
vs LQDT: 1.00
Liquidity Services Cash Ratio Historical Data
The historical data trend for Liquidity Services'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 Liquidity Services's Cash Ratio
For the Internet Retail subindustry, Liquidity Services'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.
Liquidity Services's Cash Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Liquidity Services's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Liquidity Services's Cash Ratio falls into.
Liquidity Services Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Liquidity Services's Cash Ratio for the fiscal year that ended in Sep. 2023 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.
Liquidity Services (NAS:LQDT) 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.
Liquidity Services Cash Ratio Related Terms
Thank you for viewing the detailed overview of Liquidity Services's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Liquidity Services (Liquidity Services) Business Description
Liquidity Services Inc is an online auction marketplace. It manages and sells inventory and equipment for business and government clients by operating a network of e-commerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering across different product categories. The company has four reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio. It generates majority of its revenue from Retail Supply Chain Group (RSCG) segment which consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. Geographically, a substantial portion the company's revenue is generated from its business in United States.
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