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Ashland Inc (NYSE:ASH)
Cash to Debt Ratio
0.09 (As of Dec. 2013)

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. Ashland Inc's cash to debt ratio for the quarter that ended in Dec. 2013 was 0.09.

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, Ashland Inc couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2013.

ASH' s 10-Year Cash to Debt Range
Min: 0.01   Max: 26.45
Current: 0.09

0.01
26.45

During the past 13 years, Ashland Inc's highest Cash to Debt Ratio was 26.45. The lowest was 0.01. And the median was 0.11.

ASH's Cash to Debtis ranked lower than
65% of the 989 Companies
in the Global Chemicals industry.

( Industry Median: 0.68 vs. ASH: 0.09 )

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.

Ashland Inc's Cash to Debt Ratio for the fiscal year that ended in Sep. 2013 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=346 / (320 + 2947)
=0.11

Ashland Inc's Cash to Debt Ratio for the quarter that ended in Dec. 2013 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=295 / (314 + 2948)
=0.09

* 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.

Ashland Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
cash2debt 0.1614.7726.4515.2513.420.220.340.190.150.11

Ashland Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
cash2debt 0.190.120.160.160.150.140.130.110.110.09
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