Mead Johnson Nutrition Co has a Cash Ratio of 1.32. 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 Mead Johnson Nutrition Co's Cash Ratio or its related term are showing as below:
MJN's Cash Ratio is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 0.39 * Ranked among companies with meaningful Cash Ratio only.
Mead Johnson Nutrition Co 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 Mead Johnson Nutrition Co's Cash Ratio
For the Packaged Foods subindustry, Mead Johnson Nutrition Co'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.
Mead Johnson Nutrition Co's Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Mead Johnson Nutrition Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Mead Johnson Nutrition Co's Cash Ratio falls into.
Mead Johnson Nutrition Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Mead Johnson Nutrition Co's Cash Ratio for the fiscal year that ended in Dec. 2016 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.
Mead Johnson Nutrition Co (NYSE:MJN) 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.
Mead Johnson Nutrition Co Cash Ratio Related Terms
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Mead Johnson Nutrition Co (Mead Johnson Nutrition Co) Business Description
Mead Johnson Nutrition makes, distributes, and markets pediatric nutrition products worldwide under a variety of brands, including Enfamil, its largest label, along with Sustagen, Enfagrow, and Nutramigen. Infant formula represented 59% of 2015 sales and children's nutrition 39%, with expectant and nursing mother nutrition and pediatric vitamins comprising the remainder. The company sells its products globally; 73% of sales were generated outside the United States in 2015. At about 30% of revenue, China is the company's largest market.
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