Coupa Software has a Cash Ratio of 1.37. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Coupa Software's Cash Ratio or its related term are showing as below:
COUP'
s Cash Ratio Range Over the Past 10 Years
Min: 0.57 Med: 1.38 Max: 2.85
Current: 1.37
During the past 8 years, Coupa Software's highest Cash Ratio was 2.85. The lowest was 0.57. And the median was 1.38.
COUP's Cash Ratio is not ranked
in the Software industry.
Industry Median: 0.76
vs COUP: 1.37
Coupa Software Cash Ratio Historical Data
The historical data trend for Coupa Software'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 Coupa Software's Cash Ratio
For the Software - Application subindustry, Coupa Software'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.
Coupa Software's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Coupa Software's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Coupa Software's Cash Ratio falls into.
Coupa Software Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Coupa Software's Cash Ratio for the fiscal year that ended in Jan. 2022 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.
Coupa Software (NAS:COUP) 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.
Coupa Software Cash Ratio Related Terms
Thank you for viewing the detailed overview of Coupa Software's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Coupa Software (Coupa Software) Business Description
Coupa Software is a cloud-based provider of business spending management solutions. Its BSM platform provides visibility into all spending, allowing companies to gain control over their spending, optimize their supplier network and supply chains, and manage liquidity. The platform's transactional core consists of procurement, invoicing, expense management, and payment solutions, while supporting modules ranging from strategic sourcing solutions to supply chain design and planning solutions round out the comprehensive spending management ecosystem.
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