Fundamental Global 8.00% Cumulative Preferred Stock(Fgfpp) Financials: Cash Ratio Compared To Industry Average, Plus Other Key Ratios
Liquidity Trend (Last 5 Years)
Liquidity - cash ratio
This chart shows the historical trend of cash ratio for FGFPP compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Cash Ratio
Definition: The cash ratio measures a company's ability to pay off all of its current liabilities immediately using only its most liquid assets: cash and cash equivalents. Unlike the current ratio and quick ratio, it excludes accounts receivable and inventory, making it the most conservative measure of liquidity.
Interpretation:
• In '2023', FGFPP's cash ratio was 0.34, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Property-Casualty Insurers in '2023' stood at 0.34.
• In '2024', FGFPP's cash ratio was 0.23, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2023' may indicate some operational or financial challenges. Industry average for Property-Casualty Insurers in '2024' stood at 0.23. Industry average declined by 0.10 from previous year.
Overall, FGFPP's cash ratio has been volatile but showed a downward trend over the past 2 years.
Formula: Cash Ratio = (Cash + Cash Equivalents) / Current Liabilities
Good Range: Generally, a cash ratio between 0.2 and 0.5 is considered healthy for most industries.