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Otelco, Inc. (NAS:OTT)
Cash to Debt Ratio
0.04 (As of Jun. 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. Otelco, Inc.'s cash to debt ratio for the quarter that ended in Jun. 2014 was 0.04.

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

OTT' s 10-Year Cash to Debt Range
Min: 0.03   Max: No Debt
Current: 0.04

During the past 13 years, Otelco, Inc.'s highest Cash to Debt Ratio was No Debt. The lowest was 0.03. And the median was 0.07.

OTT's Cash to Debtis ranked higher than
60% of the 887 Companies
in the Global Telecom Services industry.

( Industry Median: 0.31 vs. OTT: 0.04 )

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.

Otelco, Inc.'s Cash to Debt Ratio for the fiscal year that ended in Dec. 2013 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=9.916 / (7.441 + 121.192)
=0.08

Otelco, Inc.'s Cash to Debt Ratio for the quarter that ended in Jun. 2014 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=4.807 / (6.665 + 110.394)
=0.04

* 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.

Otelco, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
cash2debt 0.030.040.070.080.050.070.070.050.120.08

Otelco, Inc. Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
cash2debt 0.060.090.100.12No Debt0.080.080.080.060.04
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