Chatham Lodging Trust has a Cash Ratio of 1.97. 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 Chatham Lodging Trust's Cash Ratio or its related term are showing as below:
CLDT'
s Cash Ratio Range Over the Past 10 Years
Min: 0.12 Med: 0.39 Max: 1.97
Current: 1.97
During the past 13 years, Chatham Lodging Trust's highest Cash Ratio was 1.97. The lowest was 0.12. And the median was 0.39.
CLDT's Cash Ratio is ranked better than 82.62% of 702
companies
in the REITs industry
Industry Median: 0.43
vs CLDT: 1.97
* 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 Chatham Lodging Trust's Cash Ratio
For the REIT - Hotel & Motel subindustry, Chatham Lodging Trust'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.
Chatham Lodging Trust's Cash Ratio Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Chatham Lodging Trust's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Chatham Lodging Trust's Cash Ratio falls into.
Chatham Lodging Trust Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Chatham Lodging Trust'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.
Chatham Lodging Trust (NYSE:CLDT) 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.
Chatham Lodging Trust Cash Ratio Related Terms
Thank you for viewing the detailed overview of Chatham Lodging Trust's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Chatham Lodging Trust (Chatham Lodging Trust) Business Description
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.
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