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GuruFocus has detected 4 Warning Signs with Arch Capital Group Ltd \$ACGL.
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Arch Capital Group Ltd (NAS:ACGL)
Cash-to-Debt
0.34 (As of Dec. 2016)

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Arch Capital Group Ltd's cash to debt ratio for the quarter that ended in Dec. 2016 was 0.34.

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. Here we can see, Arch Capital Group Ltd couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2016.

ACGL' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.28   Max: No Debt
Current: 0.34

During the past 13 years, Arch Capital Group Ltd's highest Cash to Debt Ratio was No Debt. The lowest was 0.28. And the median was 0.69.

ACGL's Cash-to-Debt is ranked lower than
79% of the 68 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 2.35 vs. ACGL: 0.34 )

Definition

This is the ratio of a company's Cash and Cash Equivalents (Banks or Insurance) to its debt. The debt includes the Current Portion of Long-Term Debt and Long-Term Debt. This ratio measures the financial strength of a company. This ratio is updated quarterly.

Arch Capital Group Ltd's Cash to Debt Ratio for the fiscal year that ended in Dec. 2016 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents (Banks or Insurance) / Total Debt = Cash and Cash Equivalents (Banks or Insurance) / (Short-Term Debt + Long-Term Debt) = 842.942 / (0 + 2488.908) = 0.34

Arch Capital Group Ltd's Cash to Debt Ratio for the quarter that ended in Dec. 2016 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents (Banks or Insurance) / Total Debt = Cash and Cash Equivalents (Banks or Insurance) / (Short-Term Debt + Long-Term Debt) = 842.942 / (0 + 2488.908) = 0.34

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Arch Capital Group Ltd Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 cash2debt 0.80 0.63 0.54 0.50 0.50 0.93 0.48 0.55 0.42 0.34

Arch Capital Group Ltd Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 cash2debt 0.74 0.55 0.52 0.59 0.58 0.42 0.45 0.43 0.49 0.34
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