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Higher One Holdings Inc (NYSE:ONE)
Cash-to-Debt
0.93 (As of Mar. 2016)

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. Higher One Holdings Inc's cash to debt ratio for the quarter that ended in Mar. 2016 was 0.93.

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, Higher One Holdings Inc couldn't pay off its debt using the cash in hand for the quarter that ended in Mar. 2016.

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.

Higher One Holdings Inc's Cash to Debt Ratio for the fiscal year 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) = 26.868 / (0 + 37.561) = 0.72

Higher One Holdings Inc's Cash to Debt Ratio for the quarter that ended in Mar. 2016 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) = 35.024 / (0 + 37.483) = 0.93

* 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.

Higher One Holdings Inc Annual Data

 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 cash2debt 0.00 0.00 0.08 0.19 No Debt 5.59 0.15 0.07 0.39 0.72

Higher One Holdings Inc Quarterly Data

 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 cash2debt 0.07 0.11 0.18 0.32 0.39 0.23 0.25 0.42 0.72 0.93
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