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Dell Inc (NAS:DELL)
Cash to Debt Ratio
1.74 (As of Jul. 2013)

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. Dell Inc's cash to debt ratio for the quarter that ended in Jul. 2013 was 1.74.

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, Dell Inc could pay off its debt using the cash in hand for the quarter that ended in Jul. 2013.

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.

Dell Inc's Cash to Debt Ratio for the fiscal year that ended in Jan. 2013 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) = 12777 / (3843 + 5242) = 1.41

Dell Inc's Cash to Debt Ratio for the quarter that ended in Jul. 2013 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) = 11828 / (2736 + 4075) = 1.74

* 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

Historical Data

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

Dell Inc Annual Data

 Jan04 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 cash2debt 10.20 19.42 13.15 13.60 13.58 4.52 2.70 2.40 1.60 1.41

Dell Inc Quarterly Data

 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 cash2debt 1.90 1.96 1.68 1.60 1.52 1.41 1.25 1.41 1.51 1.74
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