ZTO Express (Cayman) has a Cash Ratio of 0.99. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for ZTO Express (Cayman)'s Cash Ratio or its related term are showing as below:
ZTO'
s Cash Ratio Range Over the Past 10 Years
Min: 0.11 Med: 1.49 Max: 3.54
Current: 0.99
During the past 10 years, ZTO Express (Cayman)'s highest Cash Ratio was 3.54. The lowest was 0.11. And the median was 1.49.
ZTO's Cash Ratio is ranked better than 70.97% of 968
companies
in the Transportation industry
Industry Median: 0.55
vs ZTO: 0.99
ZTO Express (Cayman) Cash Ratio Historical Data
The historical data trend for ZTO Express (Cayman)'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 ZTO Express (Cayman)'s Cash Ratio
For the Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'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.
ZTO Express (Cayman)'s Cash Ratio Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s Cash Ratio distribution charts can be found below:
* The bar in red indicates where ZTO Express (Cayman)'s Cash Ratio falls into.
ZTO Express (Cayman) Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
ZTO Express (Cayman)'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.
ZTO Express (Cayman) (NYSE:ZTO) 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.
ZTO Express (Cayman) Cash Ratio Related Terms
Thank you for viewing the detailed overview of ZTO Express (Cayman)'s Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
ZTO Express (Cayman) (ZTO Express (Cayman)) Business Description
ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 22.1% in 2022. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains the Chairman, CEO, and its major shareholder with 77% voting rights as of June 30, 2023. ZTO's strategic shareholder is leading China e-commerce company, Alibaba Group, with around an 11.7% interest.
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