Educational Development has a Cash Ratio of 0.16. 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 Educational Development's Cash Ratio or its related term are showing as below:
EDUC'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.06 Max: 0.65
Current: 0.16
During the past 13 years, Educational Development's highest Cash Ratio was 0.65. The lowest was 0.01. And the median was 0.06.
EDUC's Cash Ratio is ranked worse than 76.83% of 1023
companies
in the Media - Diversified industry
Industry Median: 0.54
vs EDUC: 0.16
Educational Development 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 Educational Development's Cash Ratio
For the Publishing subindustry, Educational Development'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.
Educational Development's Cash Ratio Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Educational Development's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Educational Development's Cash Ratio falls into.
Educational Development Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Educational Development's Cash Ratio for the fiscal year that ended in Feb. 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.
Educational Development (NAS:EDUC) 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.
Educational Development Cash Ratio Related Terms
Thank you for viewing the detailed overview of Educational Development's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Educational Development (Educational Development) Business Description
Educational Development Corp is the United States trade publisher of the line of educational children's books produced in the United Kingdom. Its business activity functions with two reportable segments: Direct Sales Division segment and Publishing Division segment. The Publishing Division segment markets its products to retail accounts, which include the book, school supplies, toy and gift stores and museums, through commissioned sales representatives, trade and specialty wholesalers and an internal telesales group. The Direct Sales Division segment sells their books and products through independent brand partners direct to the customer. It derives a majority of revenue from the Direct sales division segment.
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