The Beauty Health Co has a Cash Ratio of 4.75. 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 The Beauty Health Co's Cash Ratio or its related term are showing as below:
FRA:V7A0'
s Cash Ratio Range Over the Past 10 Years
Min: 0.19 Med: 6.64 Max: 14.53
Current: 4.75
During the past 6 years, The Beauty Health Co's highest Cash Ratio was 14.53. The lowest was 0.19. And the median was 6.64.
FRA:V7A0's Cash Ratio is ranked better than 95.07% of 1845
companies
in the Consumer Packaged Goods industry
Industry Median: 0.38
vs FRA:V7A0: 4.75
The Beauty Health Co Cash Ratio Historical Data
The historical data trend for The Beauty Health Co'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 The Beauty Health Co's Cash Ratio
For the Household & Personal Products subindustry, The Beauty Health Co'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.
The Beauty Health Co's Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Beauty Health Co's Cash Ratio distribution charts can be found below:
* The bar in red indicates where The Beauty Health Co's Cash Ratio falls into.
The Beauty Health Co Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
The Beauty Health Co's Cash Ratio for the fiscal year that ended in Dec. 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.
The Beauty Health Co (FRA:V7A0) 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.
The Beauty Health Co Cash Ratio Related Terms
Thank you for viewing the detailed overview of The Beauty Health Co's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
The Beauty Health Co (FRA:V7A0) Business Description
The Beauty Health Co is a category-creating beauty health company focused on bringing innovative products to market. The company's flagship brand HydraFacial is a non-invasive, and approachable beauty health platform and ecosystem with a powerful community of estheticians, consumers and partners, bridging medical and consumer retail to democratize and personalize skin care solutions for the masses. Geographically, it derives a majority of revenue from the Americas.
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