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', YSG's cash ratio was 3.58, indicating the company's ability to meet short-term obligations purely with cash. Industry average for Package Goods/Cosmetics in '2021' stood at 1.35.
• In '2022', YSG's cash ratio was 2.57, 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 Package Goods/Cosmetics in '2022' stood at 0.67. Industry average declined by 0.68 from previous year.
• In '2023', YSG's cash ratio was 1.37, 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 Package Goods/Cosmetics in '2023' stood at 1.05. Industry average increased by 0.38 compared to previous year.
• In '2024', YSG's cash ratio was 1.28, 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 Package Goods/Cosmetics in '2024' stood at 0.75. Industry average declined by 0.30 from previous year.
Overall, YSG'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.