Formula
Cash to Debt
=
Cash & Short-Term Investments
Total Debt
- Cash & Short-Term Investments = Cash, equivalents, and liquid assets convertible within one year.
- Total Debt = Sum of short-term and long-term debt obligations.
Alpha Finance
Current Value MRQ
Cash & Investments
—
Total Debt
—
Cash to Debt
—
—
Cash To Debt Drivers —
Table
| Year | Cash to Debt |
|---|
Definition
The Cash to Debt ratio compares a company's cash and short-term investments to its total debt. A higher ratio indicates stronger solvency and a better ability to meet obligations. A ratio above 1.0 means the company holds more cash than debt — a strong position. However, the ideal range varies by industry: tech companies often maintain higher ratios (~0.5–1.0), while capital-intensive industries like utilities may operate at lower levels (~0.2–0.4).
Strong≥ 1.0×
Adequate0.7 – 1.0×
Thin0.5 – 0.7×
Weak< 0.5×
AlphaAI Cash to Debt Analysis
Powered by Alpha Finance
AI-powered insights will appear here...