Oriental Aromatics has a Cash Ratio of 0.05. 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 Oriental Aromatics's Cash Ratio or its related term are showing as below:
BOM:500078'
s Cash Ratio Range Over the Past 10 Years
Min: 0.02 Med: 0.04 Max: 0.17
Current: 0.04
During the past 13 years, Oriental Aromatics's highest Cash Ratio was 0.17. The lowest was 0.02. And the median was 0.04.
BOM:500078's Cash Ratio is ranked worse than 93.45% of 1512
companies
in the Chemicals industry
Industry Median: 0.54
vs BOM:500078: 0.04
Oriental Aromatics Cash Ratio Historical Data
The historical data trend for Oriental Aromatics'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 Oriental Aromatics's Cash Ratio
For the Specialty Chemicals subindustry, Oriental Aromatics'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.
Oriental Aromatics's Cash Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Oriental Aromatics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Oriental Aromatics's Cash Ratio falls into.
Oriental Aromatics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Oriental Aromatics's Cash Ratio for the fiscal year that ended in Mar. 2024 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.
Oriental Aromatics (BOM:500078) 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.
Oriental Aromatics Cash Ratio Related Terms
Thank you for viewing the detailed overview of Oriental Aromatics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Oriental Aromatics (BOM:500078) Business Description
Oriental Aromatics Ltd is Indian based company engaged in the business of manufacture of fine chemicals along with its principal products and services include Perfumery Chemicals, and Camphor and Isoborneol. The organization is also holds manufacturing and selling of camphor, terpineols, resins, aromatic and terpene chemicals, fragrance chemicals and fragrance chemical intermediaries. The firm offers a range of products, which consists of synthetic camphor, terpineols, pine oils, resins, astromusk, perfumery chemicals and specialty chemicals. The primary segment of the company is in the business of manufacture of fine chemicals. It operates in two geographical segments: Domestic and Export. The company made majority of its revenue within operations in India.
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