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DSM Firmenich AG (XAMS:DSFIR) Cash Ratio : 0.57 (As of Dec. 2023)


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What is DSM Firmenich AG 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. DSM Firmenich AG's Cash Ratio for the quarter that ended in Dec. 2023 was 0.57.

DSM Firmenich AG 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 DSM Firmenich AG's Cash Ratio or its related term are showing as below:

XAMS:DSFIR' s Cash Ratio Range Over the Past 10 Years
Min: 0.57   Med: 0.85   Max: 1.13
Current: 0.57

During the past 3 years, DSM Firmenich AG's highest Cash Ratio was 1.13. The lowest was 0.57. And the median was 0.85.

XAMS:DSFIR's Cash Ratio is ranked better than
59.4% of 1840 companies
in the Consumer Packaged Goods industry
Industry Median: 0.39 vs XAMS:DSFIR: 0.57

DSM Firmenich AG Cash Ratio Historical Data

The historical data trend for DSM Firmenich AG'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.

* Premium members only.

DSM Firmenich AG Cash Ratio Chart

DSM Firmenich AG Annual Data
Trend Dec21 Dec22 Dec23
Cash Ratio
- 1.13 0.57

DSM Firmenich AG Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
Cash Ratio - 0.91 1.13 0.71 0.57

Competitive Comparison of DSM Firmenich AG's Cash Ratio

For the Household & Personal Products subindustry, DSM Firmenich AG'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.


DSM Firmenich AG's Cash Ratio Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where DSM Firmenich AG's Cash Ratio falls into.



DSM Firmenich AG Cash Ratio Calculation

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

DSM Firmenich AG's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash Ratio (A: Dec. 2023 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=2563/4519
=0.57

DSM Firmenich AG's Cash Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash Ratio (Q: Dec. 2023 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=2563/4519
=0.57

* 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.


DSM Firmenich AG  (XAMS:DSFIR) 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.


DSM Firmenich AG Cash Ratio Related Terms

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DSM Firmenich AG (XAMS:DSFIR) Business Description

Comparable Companies
Traded in Other Exchanges
Address
Wurmisweg 576, Kaiseraugst, CHE, 4303
DSM-Firmenich is a global science-based company formed in 2023 through the merger of DSM, a Dutch nutrition, health, and sustainable living player, and Switzerland-based Firmenich, the third-largest player in the flavor and fragrance market. The company serves a wide range of end-consumer markets providing nutrition solutions ranging from animal feed to medical and early-life nutrition, fragrances for personal-, home-, and laundry-care brands, prestige perfumes, and other ingredients for food and beverage, home, and personal care. DSM-Firmenich has nearly 30,000 employees, with more than 2,000 scientists and engineers spread across 15 research and development facilities.

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