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Nike Inc (NYSE:NKE)
Cash to Debt Ratio
3.75 (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. Nike Inc's cash to debt ratio for the quarter that ended in May. 2014 was 3.75.

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, Nike Inc could pay off its debt using the cash in hand for the quarter that ended in May. 2014.

NKE' s 10-Year Cash to Debt Range
Min: 0.12   Max: 12.59
Current: 3.75

0.12
12.59

During the past 13 years, Nike Inc's highest Cash to Debt Ratio was 12.59. The lowest was 0.12. And the median was 2.00.

NKE's Cash to Debtis ranked higher than
64% of the 759 Companies
in the Global Footwear & Accessories industry.

( Industry Median: 3.39 vs. NKE: 3.75 )

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.

Nike Inc's Cash to Debt Ratio for the fiscal year 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)
=5142 / (174 + 1199)
=3.75

Nike 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)
=5142 / (174 + 1199)
=3.75

* 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.

Nike Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
cash2debt 2.393.255.264.444.268.706.859.764.303.75

Nike Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
cash2debt 8.669.768.9810.7512.594.374.063.743.793.75
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