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 '2020', SOND's cash ratio was 2.24, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Hotels/Resorts in '2020' stood at 2.24.
• In '2021', SOND's cash ratio was 0.26, indicating the company's ability to meet short-term obligations purely with cash. The decline from '2020' may indicate some operational or financial challenges. Industry average for Hotels/Resorts in '2021' stood at 1.00. Industry average declined by 1.24 from previous year.
• In '2022', SOND's cash ratio was 0.95, indicating the company's ability to meet short-term obligations purely with cash. The increase since '2021' reflects strengthening financial performance. Industry average for Hotels/Resorts in '2022' stood at 0.79. Industry average declined by 0.21 from previous year.
• In '2023', SOND's cash ratio was 0.19, 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 Hotels/Resorts in '2023' stood at 0.65. Industry average declined by 0.14 from previous year.
Overall, SOND'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.