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Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Cash Ratio : 0.19 (As of Mar. 2024)


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What is Ali Alghanim Sons Automotive Co KSC Cash Ratio?

The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Ali Alghanim Sons Automotive Co KSC's Cash Ratio for the quarter that ended in Mar. 2024 was 0.19.

Ali Alghanim Sons Automotive Co KSC has a Cash Ratio of 0.19. 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 Ali Alghanim Sons Automotive Co KSC's Cash Ratio or its related term are showing as below:

KUW:ALG' s Cash Ratio Range Over the Past 10 Years
Min: 0.18   Med: 0.24   Max: 0.38
Current: 0.19

During the past 3 years, Ali Alghanim Sons Automotive Co KSC's highest Cash Ratio was 0.38. The lowest was 0.18. And the median was 0.24.

KUW:ALG's Cash Ratio is ranked worse than
67.8% of 1208 companies
in the Vehicles & Parts industry
Industry Median: 0.365 vs KUW:ALG: 0.19

Ali Alghanim Sons Automotive Co KSC Cash Ratio Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC'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.

* Premium members only.

Ali Alghanim Sons Automotive Co KSC Cash Ratio Chart

Ali Alghanim Sons Automotive Co KSC Annual Data
Trend Dec21 Dec22 Dec23
Cash Ratio
0.38 0.19 0.24

Ali Alghanim Sons Automotive Co KSC Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cash Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.27 0.18 0.23 0.24 0.19

Competitive Comparison of Ali Alghanim Sons Automotive Co KSC's Cash Ratio

For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.


Ali Alghanim Sons Automotive Co KSC's Cash Ratio Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Cash Ratio falls into.



Ali Alghanim Sons Automotive Co KSC Cash Ratio Calculation

The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.

Ali Alghanim Sons Automotive Co KSC's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash Ratio (A: Dec. 2023 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=18.797/79.476
=0.24

Ali Alghanim Sons Automotive Co KSC's Cash Ratio for the quarter that ended in Mar. 2024 is calculated as:

Cash Ratio (Q: Mar. 2024 )=Cash, Cash Equivalents, Marketable Securities/Total Current Liabilities
=18.998/102.197
=0.19

* 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.


Ali Alghanim Sons Automotive Co KSC  (KUW:ALG) 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.


Ali Alghanim Sons Automotive Co KSC Cash Ratio Related Terms

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Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Business Description

Traded in Other Exchanges
N/A
Address
Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076
Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business. The Primary Activities of the Company are selling and purchasing cars and spare parts, importing and exporting light and heavy vehicles and cars, renting cars, maintaining light & heavy vehicles and cars, trading auto spare parts, and renting equipment and their maintenance. The Group is divided into four main geographical segments which are the State of Kuwait, Iraq, Egypt and the United Arab Emirates. The majority is derived from Kuwait.