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. Sunstone Hotel Investors's Cash Ratio for the quarter that ended in Dec. 2023 was 2.66.
Sunstone Hotel Investors has a Cash Ratio of 2.66. 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 Sunstone Hotel Investors's Cash Ratio or its related term are showing as below:
SHO'
s Cash Ratio Range Over the Past 10 Years
Min: 0.32 Med: 1.56 Max: 4.06
Current: 2.66
During the past 13 years, Sunstone Hotel Investors's highest Cash Ratio was 4.06. The lowest was 0.32. And the median was 1.56.
SHO's Cash Ratio is ranked better than 85.59% of 708
companies
in the REITs industry
Industry Median: 0.43
vs SHO: 2.66
Sunstone Hotel Investors Cash Ratio Historical Data
The historical data trend for Sunstone Hotel Investors'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 REIT - Hotel & Motel subindustry, Sunstone Hotel Investors'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.
Sunstone Hotel Investors Cash Ratio Distribution
For the REITs industry and Real Estate sector, Sunstone Hotel Investors's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Sunstone Hotel Investors's Cash Ratio falls into.
Sunstone Hotel Investors Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Sunstone Hotel Investors'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.
Sunstone Hotel Investors (NYSE:SHO) 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.
Sunstone Hotel Investors Cash Ratio Related Terms
Thank you for viewing the detailed overview of Sunstone Hotel Investors's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Sunstone Hotel Investors (Sunstone Hotel Investors) Business Description
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. The firm's portfolio consists primarily of urban, upper-upscale hotels. The vast majority of these hotels are managed under Marriott, Hilton, Fairmont, and Sheraton brands. Regionally, the company's assets are located in its California, Other West, Midwest, and East geographical segments within the U.S. The majority of the company's revenue is derived from its Eastern operations, closely followed by its Californian operations. Sunstone's sole source of income is hotel revenue from its hotel ownership segment.
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