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. Compass Diversified Holdings's Cash Ratio for the quarter that ended in Dec. 2023 was 1.44.
Compass Diversified Holdings has a Cash Ratio of 1.44. 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 Compass Diversified Holdings's Cash Ratio or its related term are showing as below:
CODI'
s Cash Ratio Range Over the Past 10 Years
Min: 0.16 Med: 0.2 Max: 1.44
Current: 1.44
During the past 13 years, Compass Diversified Holdings's highest Cash Ratio was 1.44. The lowest was 0.16. And the median was 0.20.
CODI's Cash Ratio is ranked better than 82.72% of 515
companies
in the Conglomerates industry
Industry Median: 0.39
vs CODI: 1.44
Compass Diversified Holdings Cash Ratio Historical Data
The historical data trend for Compass Diversified Holdings'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.
* Premium members only.
Compass Diversified Holdings Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Cash Ratio
0.48
0.20
0.44
0.16
1.44
Compass Diversified Holdings Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Cash Ratio
0.16
0.16
0.20
0.18
1.44
Competitive Comparison
For the Conglomerates subindustry, Compass Diversified Holdings'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.
Compass Diversified Holdings Cash Ratio Distribution
For the Conglomerates industry and Industrials sector, Compass Diversified Holdings's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Compass Diversified Holdings's Cash Ratio falls into.
Compass Diversified Holdings Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Compass Diversified Holdings'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.
Compass Diversified Holdings (NYSE:CODI) 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.
Compass Diversified Holdings Cash Ratio Related Terms
Thank you for viewing the detailed overview of Compass Diversified Holdings's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Compass Diversified Holdings (Compass Diversified Holdings) Business Description
Compass Diversified Holdings is a diversified business conglomerate based in the United States having two groups: branded consumer business and niche industrial business. Branded consumer businesses are characterized as those businesses that capitalize on a valuable brand name in their respective market sector. It includes 5.11, Ergobaby, Liberty Safe, and Velocity Outdoor. Niche industrial businesses are characterized as those businesses that focus on manufacturing and selling particular products and industrial services within a specific market sector. It includes Advanced Circuits, Arnold, Foam Fabricators, and Sterno. The company has operations in the United States, Canada, Europe, Asia Pacific, and other International areas.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CODI has been successfully added to your 