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Micron Technology Inc (NAS:MU)
Cash to Debt Ratio
0.76 (As of May. 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. Micron Technology Inc's cash to debt ratio for the quarter that ended in May. 2014 was 0.76.

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, Micron Technology Inc couldn't pay off its debt using the cash in hand for the quarter that ended in May. 2014.

MU' s 10-Year Cash to Debt Range
Min: 0.32   Max: 8.42
Current: 0.76

0.32
8.42

During the past 13 years, Micron Technology Inc's highest Cash to Debt Ratio was 8.42. The lowest was 0.32. And the median was 1.07.

MU's Cash to Debtis ranked lower than
55% of the 1036 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 5.76 vs. MU: 0.76 )

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.

Micron Technology Inc's Cash to Debt Ratio for the fiscal year that ended in Aug. 2013 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=3101 / (1585 + 4452)
=0.51

Micron Technology Inc's Cash to Debt Ratio for the quarter that ended in May. 2014 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=4264 / (1508 + 4137)
=0.76

* 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 and Cash Equivalents


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Micron Technology Inc Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
cash2debt 1.121.115.391.090.500.481.231.080.780.51

Micron Technology Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
cash2debt 0.910.730.780.660.610.700.510.670.690.76
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