Erdene Resource Development has a Cash Ratio of 23.39. 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 Erdene Resource Development's Cash Ratio or its related term are showing as below:
TSX:ERD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.44 Med: 8.32 Max: 23.39
Current: 23.39
During the past 13 years, Erdene Resource Development's highest Cash Ratio was 23.39. The lowest was 0.44. And the median was 8.32.
TSX:ERD's Cash Ratio is ranked better than 94.58% of 2602
companies
in the Metals & Mining industry
Industry Median: 1.19
vs TSX:ERD: 23.39
Erdene Resource Development 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 Erdene Resource Development's Cash Ratio
For the Other Industrial Metals & Mining subindustry, Erdene Resource Development'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.
Erdene Resource Development's Cash Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Erdene Resource Development's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Erdene Resource Development's Cash Ratio falls into.
Erdene Resource Development 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.
Erdene Resource Development (TSX:ERD) 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.
Erdene Resource Development Cash Ratio Related Terms
Thank you for viewing the detailed overview of Erdene Resource Development's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Erdene Resource Development (TSX:ERD) Business Description
Erdene Resource Development Corp is a Canadian-based resource exploration company. It is primarily engaged in the exploration and development of precious metals and mineral deposits in Mongolia. The company's project consists of Bayan Khundii, Altan Nar, Zuun Mod, and Khuvyn Khar. The Bayan Khundii and Altan Nar project is located within the Tian-Shan copper-gold belt in southwest Mongolia from the Chinese border city of Ceke. The Zuun Mod project is located within 200 kilometres of China's border in Mongolia's Bayankhongor Province. The Khuvyn Khar copper-silver project is located on the Zuun Mod property.
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