Decentral Life has a Cash Ratio of 0.87. 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 Decentral Life's Cash Ratio or its related term are showing as below:
WDLF'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.06 Max: 199
Current: 0.87
During the past 11 years, Decentral Life's highest Cash Ratio was 199.00. The lowest was 0.01. And the median was 0.06.
WDLF's Cash Ratio is ranked better than 54.49% of 2738
companies
in the Software industry
Industry Median: 0.76
vs WDLF: 0.87
Decentral Life Cash Ratio Historical Data
The historical data trend for Decentral Life'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 Decentral Life's Cash Ratio
For the Software - Application subindustry, Decentral Life'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.
Decentral Life's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Decentral Life's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Decentral Life's Cash Ratio falls into.
Decentral Life Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Decentral Life's Cash Ratio for the fiscal year that ended in Dec. 2022 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.
Decentral Life (OTCPK:WDLF) 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.
Decentral Life Cash Ratio Related Terms
Thank you for viewing the detailed overview of Decentral Life's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Decentral Life (Decentral Life) Business Description
Decentral Life Inc is a SaaS company providing blockchain and AI technology through license agreements, with a division of the company, Social Life Network, that operates a Technology Business Incubator (TBI) that provides tech start-ups with executive leadership and consulting, making it easier for start-up founders to focus on raising capital, perfecting their business model, and growing their customer base and usership. The Company's seed technology is an artificial intelligence powered social network and Ecommerce platform that leverages blockchain technology to increase speed, security and accuracy on the niche social networks that it licenses to the companies in its TBI.
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