Hamid Fabrics has a Cash Ratio of 0.01. 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 Hamid Fabrics's Cash Ratio or its related term are showing as below:
DHA:HFL'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.02 Max: 0.98
Current: 0.01
During the past 10 years, Hamid Fabrics's highest Cash Ratio was 0.98. The lowest was 0.01. And the median was 0.02.
The historical data trend for Hamid Fabrics'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 Hamid Fabrics's Cash Ratio
For the Textile Manufacturing subindustry, Hamid Fabrics'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.
Hamid Fabrics's Cash Ratio Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hamid Fabrics's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Hamid Fabrics's Cash Ratio falls into.
Hamid Fabrics Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Hamid Fabrics's Cash Ratio for the fiscal year that ended in Jun. 2023 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.
Hamid Fabrics (DHA:HFL) 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.
Hamid Fabrics Cash Ratio Related Terms
Thank you for viewing the detailed overview of Hamid Fabrics's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Hamid Fabrics PLC is a manufacturer of solid-dye fabric for the readymade garment industry. The company's product range includes cotton fabrics as well as blended fabrics such as cotton/polyester, cotton/viscose, nylon/cotton and cotton/lycra. The weaving unit produces grey fabrics in various designs and constructions such as Twill, Canvas, Oxford, Rib stop, Rib cord, Ottoman, Herringbone, and various dobby designs of different weight ranges. The finishing mix of Hamid Fabrics Limited comprises water repellent, fireproof, wrinkle-free, Teflon coating, aero finish and chintz finish. The company caters to the markets in the United States of American and the European Union.
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