Fastly has a Cash Ratio of 2.74. 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 Fastly's Cash Ratio or its related term are showing as below:
FSLY'
s Cash Ratio Range Over the Past 10 Years
Min: 2.05 Med: 3.53 Max: 11.16
Current: 2.74
During the past 7 years, Fastly's highest Cash Ratio was 11.16. The lowest was 2.05. And the median was 3.53.
FSLY's Cash Ratio is ranked better than 78.35% of 2771
companies
in the Software industry
Industry Median: 0.76
vs FSLY: 2.74
Fastly Cash Ratio Historical Data
The historical data trend for Fastly'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.
For the Software - Application subindustry, Fastly'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.
Fastly's Cash Ratio Distribution in the Software Industry
For the Software industry and Technology sector, Fastly's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Fastly's Cash Ratio falls into.
Fastly Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Fastly'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.
Fastly (NYSE:FSLY) 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.
Fastly Cash Ratio Related Terms
Thank you for viewing the detailed overview of Fastly's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Fastly operates a content delivery network, which is necessary for entities to provide faster and more reliable online content. Fastly's strategy differs from traditional CDNs, which focus on locating servers in as many locations as possible to store copies of files that consumers most use. Fastly is in far fewer sites than traditional CDNs, but it houses servers in the most network-dense data centers. Instead of simply storing static content, it allows its customers to program on its platform, enabling edge computing and better service of the more dynamic content that was traditionally not well served by CDNs. Fastly gears its service to the largest, most sophisticated enterprises rather than small companies and generated nearly three fourths of its revenue in the United States in 2022.
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