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Electro Rent Corp (NAS:ELRC)
Cash-to-Debt
No Debt (As of Feb. 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. Electro Rent Corp's cash to debt ratio for the quarter that ended in Feb. 2016 was No Debt.

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, Electro Rent Corp could pay off its debt using the cash in hand for the quarter that ended in Feb. 2016.

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.

Electro Rent Corp's Cash to Debt Ratio for the fiscal year that ended in May. 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) = 4.064 / (2.387 + 0) = 1.70

Electro Rent Corp's Cash to Debt Ratio for the quarter that ended in Feb. 2016 is calculated as:

Electro Rent Corp had no debt.

* 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.

Electro Rent Corp Annual Data

 May06 May07 May08 May09 May10 May11 May12 May13 May14 May15 cash2debt No Debt No Debt No Debt No Debt No Debt No Debt No Debt 1.04 No Debt 1.70

Electro Rent Corp Quarterly Data

 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 cash2debt 0.96 2.58 No Debt No Debt 1.83 No Debt 1.70 No Debt No Debt No Debt
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