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 '2021', HNNA's cash ratio was 2.85, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Investment Managers in '2021' stood at 1.35.
• In '2022', HNNA's cash ratio was 12.40, indicating the company's ability to meet short-term obligations purely with cash. The increase since '2021' reflects strengthening financial performance. Industry average for Investment Managers in '2022' stood at 1.25. Industry average declined by 0.10 from previous year.
• In '2023', HNNA's cash ratio was 14.43, indicating the company's ability to meet short-term obligations purely with cash. The increase since '2022' reflects strengthening financial performance. Industry average for Investment Managers in '2023' stood at 1.27. Industry average increased by 0.03 compared to previous year.
• In '2024', HNNA's cash ratio was 12.90, 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 Investment Managers in '2024' stood at 1.21. Industry average declined by 0.07 from previous year.
Overall, HNNA's cash ratio has been volatile but showed an upward trend over the past 4 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.