Novo Resources (TSX:NVO) Cash Ratio : 1.31 (As of Dec. 2023)

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What is Novo Resources 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. Novo Resources's Cash Ratio for the quarter that ended in Dec. 2023 was 1.31.

Novo Resources has a Cash Ratio of 1.31. 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 Novo Resources's Cash Ratio or its related term are showing as below:

TSX:NVO' s Cash Ratio Range Over the Past 10 Years
Min: 0.71 Med: 3.4 Max: 114.05
Current: 1.31

During the past 13 years, Novo Resources's highest Cash Ratio was 114.05. The lowest was 0.71. And the median was 3.40.

TSX:NVO's Cash Ratio is ranked better than
50.69% of 2598 companies
in the Metals & Mining industry
Industry Median: 1.25 vs TSX:NVO: 1.31

Novo Resources Cash Ratio Historical Data

The historical data trend for Novo Resources'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.

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Novo Resources Cash Ratio Chart

Novo Resources Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Dec21

Dec22

Dec23

Cash Ratio

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9.35

2.98

0.71

2.11

1.31

Novo Resources Quarterly Data
	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash Ratio	Get a 7-Day Free Trial															2.11	2.04	2.08	2.85	1.31

Competitive Comparison of Novo Resources's Cash Ratio

For the Gold subindustry, Novo Resources'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.

Novo Resources's Cash Ratio Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Novo Resources's Cash Ratio distribution charts can be found below:

* The bar in red indicates where Novo Resources's Cash Ratio falls into.

Novo Resources Cash Ratio Calculation

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

Novo Resources'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
	=	11.762	/	8.976
	=	1.31

Novo Resources's Cash Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash Ratio (Q: Dec. 2023 )	=	Cash, Cash Equivalents, Marketable Securities	/	Total Current Liabilities
	=	11.762	/	8.976
	=	1.31

Novo Resources (TSX:NVO) 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.

Novo Resources Cash Ratio Related Terms

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Novo Resources (TSX:NVO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Novo Resources Corp (TSX:NVO) » Definitions » Cash Ratio

Comparable Companies

Traded in Other Exchanges

NSRPF:USA 1NO:Germany NVO:Australia

Address

1199 West Hastings Street, Vancouver, BC, CAN, V6E 3T5

Website

https://www.novoresources.com

Novo Resources Corp is a company engaged in the business of evaluating, acquiring, and exploring natural resource properties with a focus on gold. The organization has business interests in properties located in Australia, Canada, and the USA. Its projects include Beatons Creek Property, Millennium Property, Blue Spec; Paleo-Placer; Comet Well, and others. It has two segments Mining operations and exploration operations.