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Accenture PLC (NYSE:ACN)
Cash to Debt Ratio
121.25 (As of May. 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. Accenture PLC's cash to debt ratio for the quarter that ended in May. 2016 was 121.25.

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, Accenture PLC could pay off its debt using the cash in hand for the quarter that ended in May. 2016.

ACN' s Cash to Debt Range Over the Past 10 Years
Min: 3.67   Max: 201296.58
Current: 121.25

3.67
201296.58

During the past 13 years, Accenture PLC's highest Cash to Debt Ratio was 201296.58. The lowest was 3.67. And the median was 150.59.

ACN's Cash to Debt is ranked higher than
58% of the 1872 Companies
in the Global Information Technology Services industry.

( Industry Median: 10.51 vs. ACN: 121.25 )

Definition

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities 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.

Accenture PLC's Cash to Debt Ratio for the fiscal year that ended in Aug. 2015 is calculated as:

Cash to Debt Ratio=Cash, Cash Equivalents, Marketable Securities / Total Debt
=Cash, Cash Equivalents, Marketable Securities / (Short-Term Debt + Long-Term Debt)
=4363.214 / (1.848 + 25.587)
=159.04

Accenture PLC's Cash to Debt Ratio for the quarter that ended in May. 2016 is calculated as:

Cash to Debt Ratio=Cash, Cash Equivalents, Marketable Securities / Total Debt
=Cash, Cash Equivalents, Marketable Securities / (Short-Term Debt + Long-Term Debt)
=3500.747 / (2.072 + 26.801)
=121.25

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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

Current Portion of Long-Term Debt, Long-Term Debt, Cash and Cash Equivalents (For Banks and Insurance Companies), Cash, Cash Equivalents, Marketable Securities, Interest Coverage


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Accenture PLC Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
cash2debt 65.95134.51437.674,763.943,048.661,291.24201,296.58220.09184.19159.04

Accenture PLC Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
cash2debt 139.04151.90184.19167.03149.28148.01159.04111.23106.02121.25
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