Lam Soon (Hong Kong) has a Cash Ratio of 2.44. 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 Lam Soon (Hong Kong)'s Cash Ratio or its related term are showing as below:
HKSE:00411'
s Cash Ratio Range Over the Past 10 Years
Min: 0.84 Med: 1.72 Max: 2.45
Current: 2.44
During the past 13 years, Lam Soon (Hong Kong)'s highest Cash Ratio was 2.45. The lowest was 0.84. And the median was 1.72.
HKSE:00411's Cash Ratio is ranked better than 89.11% of 1827
companies
in the Consumer Packaged Goods industry
Industry Median: 0.37
vs HKSE:00411: 2.44
Lam Soon (Hong Kong) Cash Ratio Historical Data
The historical data trend for Lam Soon (Hong Kong)'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 Lam Soon (Hong Kong)'s Cash Ratio
For the Packaged Foods subindustry, Lam Soon (Hong Kong)'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.
Lam Soon (Hong Kong)'s Cash Ratio Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lam Soon (Hong Kong)'s Cash Ratio distribution charts can be found below:
* The bar in red indicates where Lam Soon (Hong Kong)'s Cash Ratio falls into.
Lam Soon (Hong Kong) Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Lam Soon (Hong Kong)'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.
Lam Soon (Hong Kong) (HKSE:00411) 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.
Lam Soon (Hong Kong) Cash Ratio Related Terms
Thank you for viewing the detailed overview of Lam Soon (Hong Kong)'s Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Lam Soon (Hong Kong) (HKSE:00411) Business Description
Lam Soon (Hong Kong) Ltd is an investment holding company. It is engaged in the manufacturing of food and detergent products. The company's business segments, which are based on its activities are Food and Home Care. The food segment includes the manufacturing and distribution of food products including flour, edible oils, and vegetable fats. The Home Care segment includes the manufacturing and distribution of household cleaning products including liquid dishwashing detergent, laundry powder, liquid laundry detergent, fabric softener, floor cleaner, and industrial marble cleanser. It generates the majority of the revenue from the Food segment activities. It has operations in Hong Kong, and international countries, of which the majority of the revenue is derived from Mainland China.
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