Resideo Technologies has a Cash Ratio of 0.26. 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 Resideo Technologies's Cash Ratio or its related term are showing as below:
REZI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.19 Max: 0.52
Current: 0.26
During the past 9 years, Resideo Technologies's highest Cash Ratio was 0.52. The lowest was 0.04. And the median was 0.19.
REZI's Cash Ratio is ranked worse than 51.35% of 148
companies
in the Industrial Distribution industry
Industry Median: 0.275
vs REZI: 0.26
Resideo Technologies Cash Ratio Historical Data
The historical data trend for Resideo Technologies'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 Resideo Technologies's Cash Ratio
For the Industrial Distribution subindustry, Resideo Technologies'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.
Resideo Technologies's Cash Ratio Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Resideo Technologies's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Resideo Technologies's Cash Ratio falls into.
Resideo Technologies Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Resideo Technologies's Cash Ratio for the fiscal year that ended in Dec. 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.
Resideo Technologies (NYSE:REZI) 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.
Resideo Technologies Cash Ratio Related Terms
Thank you for viewing the detailed overview of Resideo Technologies's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Resideo Technologies Inc is a manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions. The company has two reportable segments; Products and Solutions segment offers temperature and humidity control, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety products, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, and ADI Global Distribution segment includes wholesale distributor of low-voltage security products including access control, fire detection, security, and video products. It derives majority of its revenue from the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
REZI has been successfully added to your 