Adicon Holdings has a Cash Ratio of 0.57. 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 Adicon Holdings's Cash Ratio or its related term are showing as below:
HKSE:09860'
s Cash Ratio Range Over the Past 10 Years
Min: 0.57 Med: 0.75 Max: 1.22
Current: 0.57
During the past 4 years, Adicon Holdings's highest Cash Ratio was 1.22. The lowest was 0.57. And the median was 0.75.
HKSE:09860's Cash Ratio is ranked worse than 66.05% of 215
companies
in the Medical Diagnostics & Research industry
Industry Median: 0.95
vs HKSE:09860: 0.57
Adicon Holdings Cash Ratio Historical Data
The historical data trend for Adicon Holdings'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 Adicon Holdings's Cash Ratio
For the Diagnostics & Research subindustry, Adicon Holdings'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.
Adicon Holdings's Cash Ratio Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Adicon Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Adicon Holdings's Cash Ratio falls into.
Adicon Holdings Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Adicon Holdings'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.
Adicon Holdings (HKSE:09860) 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.
Adicon Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of Adicon Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Adicon Holdings Ltd is one of the top three independent clinical laboratory or ICL, service providers in China. The company offers comprehensive and best-in-class testing services primarily to hospitals and health check centers through an integrated network of 33 self-operated laboratories across China. The high quality of its services is backed by its strong performance in terms of international accreditation and comprehensive testing menu. Its testing portfolio consists of over 4,000 medical diagnostic tests, including over 1,700 routine tests and over 2,300 esoteric tests. It has three major service platforms. Among them, the inspection service platform consists of clinical, pathology, reproductive genetic, genetic, and mass spectrometry laboratories.
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