Tianqi Lithium has a Cash Ratio of 1.40. 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 Tianqi Lithium's Cash Ratio or its related term are showing as below:
HKSE:09696'
s Cash Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.18 Max: 1.63
Current: 1.4
During the past 5 years, Tianqi Lithium's highest Cash Ratio was 1.63. The lowest was 0.03. And the median was 0.18.
HKSE:09696's Cash Ratio is ranked better than 51.88% of 2600
companies
in the Metals & Mining industry
Industry Median: 1.22
vs HKSE:09696: 1.40
Tianqi Lithium Cash Ratio Historical Data
The historical data trend for Tianqi Lithium'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 Tianqi Lithium's Cash Ratio
For the Other Industrial Metals & Mining subindustry, Tianqi Lithium'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.
Tianqi Lithium's Cash Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Tianqi Lithium's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Tianqi Lithium's Cash Ratio falls into.
Tianqi Lithium Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Tianqi Lithium'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.
Tianqi Lithium (HKSE:09696) 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.
Tianqi Lithium Cash Ratio Related Terms
Thank you for viewing the detailed overview of Tianqi Lithium's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Tianqi Lithium is a leading new energy materials company headquartered in China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that has achieved 100% self-sufficiency and has fully vertically integrated lithium mines. It operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.
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