Rajoo Engineers has a Cash Ratio of 0.43. 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 Rajoo Engineers's Cash Ratio or its related term are showing as below:
BOM:522257'
s Cash Ratio Range Over the Past 10 Years
Min: 0.05 Med: 0.27 Max: 0.77
Current: 0.43
During the past 13 years, Rajoo Engineers's highest Cash Ratio was 0.77. The lowest was 0.05. And the median was 0.27.
BOM:522257's Cash Ratio is ranked worse than 56.87% of 2984
companies
in the Industrial Products industry
Industry Median: 0.54
vs BOM:522257: 0.43
Rajoo Engineers Cash Ratio Historical Data
The historical data trend for Rajoo Engineers'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 Rajoo Engineers's Cash Ratio
For the Specialty Industrial Machinery subindustry, Rajoo Engineers'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.
Rajoo Engineers's Cash Ratio Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Rajoo Engineers's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Rajoo Engineers's Cash Ratio falls into.
Rajoo Engineers Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Rajoo Engineers'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.
Rajoo Engineers (BOM:522257) 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.
Rajoo Engineers Cash Ratio Related Terms
Thank you for viewing the detailed overview of Rajoo Engineers's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rajoo Engineers Ltd manufactures and sells plastic processing machinery and post extrusion equipment. The company's products and solutions include Monolayer Blown Film Lines, Downward Extrusion Blown Film Lines, Multilayer Blown Film Lines, 5 Layer Polyolefin Dedicated, PS/PP/ABS Sheet Lines, PS/PE Foam Extrusion Lines, Thermoforming, PS Foam Vacuum Forming Machines, Twin Screw, Pipe Plant, Drip Irrigation Pipe Plant for Round, Flat Dripper, Lab Equipment and others. Company products apply to flexible packaging, agriculture, infrastructure, automobiles, food and beverages, pharmaceuticals, stationery, printing, etc. It serves the domestic and international markets and derives substantial revenue from the sale of services overseas.
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