Premier Foods (LSE:PFD) Cash Ratio : 0.22 (As of Sep. 2023)

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What is Premier Foods Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Premier Foods's Cash Ratio for the quarter that ended in Sep. 2023 was 0.22.

Premier Foods has a Cash Ratio of 0.22. 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 Premier Foods's Cash Ratio or its related term are showing as below:

LSE:PFD' s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.11 Max: 0.52
Current: 0.37

During the past 13 years, Premier Foods's highest Cash Ratio was 0.52. The lowest was 0.01. And the median was 0.11.

LSE:PFD's Cash Ratio is ranked better than
50.31% of 1779 companies
in the Consumer Packaged Goods industry
Industry Median: 0.37 vs LSE:PFD: 0.37

Premier Foods Cash Ratio Historical Data

The historical data trend for Premier Foods'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.

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Premier Foods Cash Ratio Chart

Premier Foods Annual Data

Trend

Dec13

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Cash Ratio

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0.52

0.02

0.21

0.24

0.37

Premier Foods Semi-Annual Data
	Dec13	Jun14	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
Cash Ratio	Get a 7-Day Free Trial															0.21	0.08	0.24	0.22	0.37

Competitive Comparison of Premier Foods's Cash Ratio

For the Packaged Foods subindustry, Premier Foods'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.

Premier Foods's Cash Ratio Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Premier Foods's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Premier Foods's Cash Ratio falls into.

Premier Foods Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

Premier Foods's Cash Ratio for the fiscal year that ended in Mar. 2024 is calculated as:

Cash Ratio (A: Mar. 2024 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	102.3	/	278.3
	=	0.37

Premier Foods's Cash Ratio for the quarter that ended in Sep. 2023 is calculated as:

Cash Ratio (Q: Sep. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	67.7	/	311.6
	=	0.22

Premier Foods (LSE:PFD) 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.

Premier Foods Cash Ratio Related Terms

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Premier Foods (LSE:PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Premier Foods PLC (LSE:PFD) » Definitions » Cash Ratio

Comparable Companies

Traded in Other Exchanges

PRRFY:USA PFDl:UK FOJ1:Germany FOJ1:Germany

Address

Premier House, Griffiths Way, Centrium Business Park, Saint Albans, Hertfordshire, GBR, AL1 2RE

Website

https://www.premierfoods.co.uk

Premier Foods PLC is a food manufacturing company. It manufactures, processes, and distributes food products. The company's operating segments include Grocery and Sweet Treats. Grocery segment primarily sells savoury ambient food products. The Sweet Treats segment sells sweet ambient food products. It generates maximum revenue from the Grocery segment. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in Other Europe and Rest of world. Some of the company brands include Ambrosia, Angel Delight, Atora, Batchelors, Be-Ro, Bird's, Bisto, Cadbury, Coffee Compliment, Homepride, and others.