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Cash to Debt Ratio
0.77 (As of Oct. 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. Brady Corp's cash to debt ratio for the quarter that ended in Oct. 2016 was 0.77.

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, Brady Corp couldn't pay off its debt using the cash in hand for the quarter that ended in Oct. 2016.

BRC' s Cash to Debt Range Over the Past 10 Years
Min: 0.2   Max: No Debt
Current: 0.77

During the past 13 years, Brady Corp's highest Cash to Debt Ratio was No Debt. The lowest was 0.20. And the median was 0.72.

BRC's Cash to Debt is ranked higher than
53% of the 270 Companies
in the Global Security & Protection Services industry.

( Industry Median: 0.65 vs. BRC: 0.77 )

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.

Brady Corp's Cash to Debt Ratio for the fiscal year that ended in Jul. 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) = 114.492 / (52.925 + 200.774) = 0.45

Brady Corp's Cash to Debt Ratio for the quarter that ended in Oct. 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) = 166.301 / (5.354 + 210.608) = 0.77

* 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.