Switch to:
Analog Devices Inc (NAS:ADI)
Cash to Debt Ratio
3.28 (As of Oct. 2014)

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash and cash equivalents divide by its debt. Analog Devices Inc's cash to debt ratio for the quarter that ended in Oct. 2014 was 3.28.

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, Analog Devices Inc could pay off its debt using the cash in hand for the quarter that ended in Oct. 2014.

ADI' s 10-Year Cash to Debt Range
Min: 0.58   Max: No Debt
Current: 3.28

During the past 13 years, Analog Devices Inc's highest Cash to Debt Ratio was No Debt. The lowest was 0.58. And the median was 4.77.

ADI's Cash to Debtis ranked higher than
73% of the 1113 Companies
in the Global Semiconductors industry.

( Industry Median: 1.99 vs. ADI: 3.28 )

Definition

This is the ratio of a company's Cash and cash equivalents 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.

Analog Devices Inc's Cash to Debt Ratio for the fiscal year that ended in Oct. 2014 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=2866.468 / (0 + 872.789)
=3.28

Analog Devices Inc's Cash to Debt Ratio for the quarter that ended in Oct. 2014 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=2866.468 / (0 + 872.789)
=3.28

* 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 and Cash Equivalents


Historical Data

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

Analog Devices Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
cash2debt No DebtNo DebtNo DebtNo Debt4.786.714.054.755.373.28

Analog Devices Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
cash2debt 4.394.755.255.515.105.375.395.511.723.28
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK