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Kayne Anderson Energy Development Co (NYSE:KED)
Cash-to-Debt
0.32 (As of Aug. 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. Kayne Anderson Energy Development Co's cash to debt ratio for the quarter that ended in Aug. 2015 was 0.32.

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, Kayne Anderson Energy Development Co couldn't pay off its debt using the cash in hand for the quarter that ended in Aug. 2015.

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.

Kayne Anderson Energy Development Co's Cash to Debt Ratio for the fiscal year that ended in Nov. 2014 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) = 1.873 / (0 + 114) = 0.02

Kayne Anderson Energy Development Co's Cash to Debt Ratio for the quarter that ended in Aug. 2015 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) = 22.27 / (0 + 70) = 0.32

* 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.

Kayne Anderson Energy Development Co Annual Data

 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 cash2debt 0.00 0.00 No Debt 0.00 0.00 0.00 0.02 0.02 0.02 0.02

Kayne Anderson Energy Development Co Quarterly Data

 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 cash2debt 0.09 0.02 0.02 0.03 0.01 0.06 0.02 0.02 0.20 0.32
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