Rocket Lab USA has a Cash Ratio of 2.12. 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 Rocket Lab USA's Cash Ratio or its related term are showing as below:
RKLB'
s Cash Ratio Range Over the Past 10 Years
Min: 0.95 Med: 2.51 Max: 10.33
Current: 2.12
During the past 4 years, Rocket Lab USA's highest Cash Ratio was 10.33. The lowest was 0.95. And the median was 2.51.
RKLB's Cash Ratio is ranked better than 86.51% of 304
companies
in the Aerospace & Defense industry
Industry Median: 0.36
vs RKLB: 2.12
Rocket Lab USA Cash Ratio Historical Data
The historical data trend for Rocket Lab USA'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 Rocket Lab USA's Cash Ratio
For the Aerospace & Defense subindustry, Rocket Lab USA'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.
Rocket Lab USA's Cash Ratio Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rocket Lab USA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Rocket Lab USA's Cash Ratio falls into.
Rocket Lab USA Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Rocket Lab USA'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.
Rocket Lab USA (NAS:RKLB) 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.
Rocket Lab USA Cash Ratio Related Terms
Thank you for viewing the detailed overview of Rocket Lab USA's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Rocket Lab USA (Rocket Lab USA) Business Description
Rocket Lab USA Inc is engaged in space, building rockets, and spacecraft. It provides end-to-end mission services that provide frequent and reliable access to space for civil, defence, and commercial markets. It designs and manufactures the Electron and Neutron launch vehicles and Photon satellite platform. Rocket Lab's Electron launch vehicle has delivered more than 100 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. The business operates in two segments being Launch Services and Space systems. Geographically it serves Japan, Germany, rest of the world and earns key revenue from the United States.
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