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Esterline Technologies Corp (NYSE:ESL)
Cash to Debt Ratio
0.25 (As of Mar. 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. Esterline Technologies Corp's cash to debt ratio for the quarter that ended in Mar. 2016 was 0.25.

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

ESL' s Cash to Debt Range Over the Past 10 Years
Min: 0.1   Max: 1.89
Current: 0.25

0.1
1.89

During the past 13 years, Esterline Technologies Corp's highest Cash to Debt Ratio was 1.89. The lowest was 0.10. And the median was 0.34.

ESL's Cash to Debt is ranked lower than
64% of the 193 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 0.47 vs. ESL: 0.25 )

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.

Esterline Technologies Corp's Cash to Debt Ratio for the fiscal year that ended in Oct. 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)
=179.178 / (21.279 + 667.859)
=0.26

Esterline Technologies Corp's Cash to Debt Ratio for the quarter that ended in Mar. 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)
=219.271 / (17.182 + 863.583)
=0.25

* 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.

Esterline Technologies Corp Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
cash2debt 0.120.730.140.310.400.330.690.180.190.26

Esterline Technologies Corp Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Dec15Mar16
cash2debt 0.260.300.310.330.380.160.210.210.240.25
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