Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Keurig Green Mountain Inc (NAS:GMCR)
Cash-to-Debt
0.36 (As of Dec. 2015)

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. Keurig Green Mountain Inc's cash to debt ratio for the quarter that ended in Dec. 2015 was 0.36.

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, Keurig Green Mountain Inc couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2015.

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.

Keurig Green Mountain Inc's Cash to Debt Ratio for the fiscal year that ended in Sep. 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) = 59.334 / (3.55 + 447.953) = 0.13

Keurig Green Mountain Inc's Cash to Debt Ratio for the quarter that ended in Dec. 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) = 214.909 / (3.28 + 597.245) = 0.36

* 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.

Keurig Green Mountain Inc Annual Data

 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 cash2debt 0.01 0.03 0.01 3.74 0.01 0.02 0.11 1.04 3.09 0.13

Keurig Green Mountain Inc Quarterly Data

 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 cash2debt 1.04 1.34 4.13 4.40 3.09 2.21 0.18 0.19 0.13 0.36
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)