Deswell Industries has a Cash Ratio of 2.59. 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 Deswell Industries's Cash Ratio or its related term are showing as below:
DSWL'
s Cash Ratio Range Over the Past 10 Years
Min: 1.6 Med: 2.27 Max: 3.76
Current: 2.59
During the past 13 years, Deswell Industries's highest Cash Ratio was 3.76. The lowest was 1.60. And the median was 2.27.
DSWL's Cash Ratio is ranked better than 85.73% of 2466
companies
in the Hardware industry
Industry Median: 0.66
vs DSWL: 2.59
Deswell Industries Cash Ratio Historical Data
The historical data trend for Deswell Industries'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 Deswell Industries's Cash Ratio
For the Electronic Components subindustry, Deswell Industries'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.
Deswell Industries's Cash Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Deswell Industries's Cash Ratio falls into.
Deswell Industries Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Deswell Industries's Cash Ratio for the fiscal year that ended in Mar. 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.
Deswell Industries (NAS:DSWL) 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.
Deswell Industries Cash Ratio Related Terms
Thank you for viewing the detailed overview of Deswell Industries's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Deswell Industries (Deswell Industries) Business Description
Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.
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