Electro-Sensors has a Cash Ratio of 14.39. 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 Electro-Sensors's Cash Ratio or its related term are showing as below:
ELSE'
s Cash Ratio Range Over the Past 10 Years
Min: 9.12 Med: 14.81 Max: 17.13
Current: 14.39
During the past 13 years, Electro-Sensors's highest Cash Ratio was 17.13. The lowest was 9.12. And the median was 14.81.
ELSE's Cash Ratio is ranked better than 98.91% of 2466
companies
in the Hardware industry
Industry Median: 0.66
vs ELSE: 14.39
Electro-Sensors Cash Ratio Historical Data
The historical data trend for Electro-Sensors'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 Electro-Sensors's Cash Ratio
For the Scientific & Technical Instruments subindustry, Electro-Sensors'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.
Electro-Sensors's Cash Ratio Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Electro-Sensors's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Electro-Sensors's Cash Ratio falls into.
Electro-Sensors Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Electro-Sensors'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.
Electro-Sensors (NAS:ELSE) 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.
Electro-Sensors Cash Ratio Related Terms
Thank you for viewing the detailed overview of Electro-Sensors's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Electro-Sensors (Electro-Sensors) Business Description
Electro-Sensors Inc is engaged in manufacturing and selling a variety of monitoring systems that measure actual machine production and operation rates, as well as systems that regulate the speed of related machines in production processes. Its speed monitoring systems compare revolutions per minute or speed against acceptable rates as determined by a customer. It also includes a line of products that measure production counts or rates, such as parts, gallons, or board feet, alarm systems, tachometers, and other devices that translate impulses from the sensors into alarm signals, computer inputs, or digital displays that are usable by the customer.
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