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Forest Laboratories Inc (NYSE:FRX)
Cash to Debt Ratio
0.72 (As of Mar. 2014)

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash and cash equivalents divide by its debt. Forest Laboratories Inc's cash to debt ratio for the quarter that ended in Mar. 2014 was 0.72.

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, Forest Laboratories Inc couldn't pay off its debt using the cash in hand for the quarter that ended in Mar. 2014.

FRX' s 10-Year Cash to Debt Range
Min: 0.72   Max: No Debt
Current: 0.72

During the past 13 years, Forest Laboratories Inc's highest Cash to Debt Ratio was No Debt. The lowest was 0.72. And the median was No Debt.

FRX's Cash to Debtis ranked higher than
63% of the 921 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 1.48 vs. FRX: 0.72 )

Definition

This is the ratio of a company's Cash and cash equivalents 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.

Forest Laboratories Inc's Cash to Debt Ratio for the fiscal year that ended in Mar. 2014 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents / Total Debt = Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt) = 2153.05 / (0 + 3000) = 0.72

Forest Laboratories Inc's Cash to Debt Ratio for the quarter that ended in Mar. 2014 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents / Total Debt = Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt) = 2153.05 / (0 + 3000) = 0.72

* 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.

Forest Laboratories Inc Annual Data

 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 cash2debt No Debt No Debt No Debt No Debt No Debt No Debt No Debt No Debt No Debt 0.72

Forest Laboratories Inc Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 cash2debt No Debt No Debt No Debt No Debt No Debt No Debt No Debt No Debt 2.52 0.72
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