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Gouverneur Bancorp Inc (OTCPK:GOVB)
Cash-to-Debt
0.25 (As of Jun. 2008)

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. Gouverneur Bancorp Inc's cash to debt ratio for the quarter that ended in Jun. 2008 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, Gouverneur Bancorp Inc couldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2008.

Definition

This is the ratio of a company's Cash and Cash Equivalents (Banks or Insurance) 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.

Gouverneur Bancorp Inc's Cash to Debt Ratio for the fiscal year that ended in Sep. 2007 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents (Banks or Insurance) / Total Debt = Cash and Cash Equivalents (Banks or Insurance) / (Short-Term Debt + Long-Term Debt) = 3.88 / (0 + 33.15) = 0.12

Gouverneur Bancorp Inc's Cash to Debt Ratio for the quarter that ended in Jun. 2008 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents (Banks or Insurance) / Total Debt = Cash and Cash Equivalents (Banks or Insurance) / (Short-Term Debt + Long-Term Debt) = 7.095 / (0 + 27.95) = 0.25

* 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.

Gouverneur Bancorp Inc Annual Data

 Sep98 Sep99 Sep00 Sep01 Sep02 Sep03 Sep04 Sep05 Sep06 Sep07 cash2debt No Debt 1.47 0.65 0.36 0.47 0.66 0.12 0.07 0.07 0.12

Gouverneur Bancorp Inc Quarterly Data

 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 cash2debt 0.14 0.14 0.07 0.09 0.10 0.09 0.12 0.10 0.25 0.25
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