Danimer Scientific has a Cash Ratio of 3.76. 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 Danimer Scientific's Cash Ratio or its related term are showing as below:
DNMR'
s Cash Ratio Range Over the Past 10 Years
Min: 0.18 Med: 3.76 Max: 7.48
Current: 3.76
During the past 5 years, Danimer Scientific's highest Cash Ratio was 7.48. The lowest was 0.18. And the median was 3.76.
DNMR's Cash Ratio is ranked better than 91.99% of 1549
companies
in the Chemicals industry
Industry Median: 0.53
vs DNMR: 3.76
Danimer Scientific Cash Ratio Historical Data
The historical data trend for Danimer Scientific'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 Danimer Scientific's Cash Ratio
For the Specialty Chemicals subindustry, Danimer Scientific'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.
Danimer Scientific's Cash Ratio Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Danimer Scientific's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Danimer Scientific's Cash Ratio falls into.
Danimer Scientific Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Danimer Scientific'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.
Danimer Scientific (NYSE:DNMR) 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.
Danimer Scientific Cash Ratio Related Terms
Thank you for viewing the detailed overview of Danimer Scientific's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Danimer Scientific (Danimer Scientific) Business Description
Danimer Scientific Inc creates more sustainable, more natural ways to make plastic products sold under the proprietary Nodax brand name. The company's renewable and sustainable biopolymers have helped create plastic products that are 100% biodegradable and compostable. Danimer Scientific's products return to nature instead of polluting lands and waters. Its technology can be found in a vast array of plastic end-use products that people use every day. Applications for its biopolymers include additives, aqueous coatings, fibers, filaments, films, and injection-molded articles, among others. The company holds more than 470 patents and pending patent applications in nearly 20 countries for a range of manufacturing processes and biopolymer formulations.
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