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', HYLN's cash ratio was 16.96, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Construction/Ag Equipment/Trucks in '2021' stood at 1.00.
• In '2022', HYLN's cash ratio was 8.14, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2021' may indicate some operational or financial challenges. Industry average for Construction/Ag Equipment/Trucks in '2022' stood at 0.85. Industry average declined by 0.15 from previous year.
• In '2023', HYLN's cash ratio was 0.85, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2022' may indicate some operational or financial challenges. Industry average for Construction/Ag Equipment/Trucks in '2023' stood at 0.35. Industry average declined by 0.49 from previous year.
• In '2024', HYLN's cash ratio was 0.65, 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 Construction/Ag Equipment/Trucks in '2024' stood at 0.27. Industry average declined by 0.08 from previous year.
Overall, HYLN's cash ratio has been volatile but showed a downward 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.