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Educational Development Corp (NAS:EDUC)
Cash to Debt Ratio
0.04 (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. Educational Development Corp's cash to debt ratio for the quarter that ended in May. 2016 was 0.04.

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

EDUC' s Cash to Debt Range Over the Past 10 Years
Min: 0.02   Max: No Debt
Current: 0.04

During the past 13 years, Educational Development Corp's highest Cash to Debt Ratio was No Debt. The lowest was 0.02. And the median was 0.83.

EDUC's Cash to Debt is ranked lower than
90% of the 185 Companies
in the Global Publishing industry.

( Industry Median: 1.44 vs. EDUC: 0.04 )

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.

Educational Development Corp's Cash to Debt Ratio for the fiscal year that ended in Feb. 2016 is calculated as:

Educational Development Corp's Cash to Debt Ratio for the quarter that ended in May. 2016 is calculated as:

* 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.

Educational Development Corp Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
cash2debt No DebtNo Debt9.657.9826.513.040.38No Debt0.270.06

Educational Development Corp Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
cash2debt No Debt0.640.030.460.270.220.23No Debt0.060.04
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