Global Business Travel Group has a Cash Ratio of 0.57. 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 Global Business Travel Group's Cash Ratio or its related term are showing as below:
GBTG'
s Cash Ratio Range Over the Past 10 Years
Min: 0.39 Med: 0.65 Max: 1.02
Current: 0.57
During the past 5 years, Global Business Travel Group's highest Cash Ratio was 1.02. The lowest was 0.39. And the median was 0.65.
GBTG's Cash Ratio is ranked worse than 57.74% of 2773
companies
in the Software industry
Industry Median: 0.76
vs GBTG: 0.57
Global Business Travel Group Cash Ratio Historical Data
* 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 Global Business Travel Group's Cash Ratio
For the Software - Application subindustry, Global Business Travel Group'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.
Global Business Travel Group's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Global Business Travel Group's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Global Business Travel Group's Cash Ratio falls into.
Global Business Travel Group Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
* 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.
Global Business Travel Group (NYSE:GBTG) 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.
Global Business Travel Group Cash Ratio Related Terms
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Global Business Travel Group (Global Business Travel Group) Business Description
Global Business Travel Group Inc operates as a business-to-business travel platform. It is engaged in providing software and services to manage travel, expenses, and meetings and events for companies of all sizes. The company is engaged in building the marketplace in B2B travel to deliver unrivaled choice, value, and experiences. It also provides business travel solutions, simplified travel management, and business consulting services. Further, It provides a service solution, automated booking, diverse options, system integration, and specialized traveler care. The company also offers Expert Auditor Expert Care and Business Travel App.
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