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Resource America Inc (NAS:REXI)
Cash-to-Debt
1.31 (As of Jun. 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. Resource America Inc's cash to debt ratio for the quarter that ended in Jun. 2016 was 1.31.

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, Resource America Inc could pay off its debt using the cash in hand for the quarter that ended in Jun. 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.

Resource America 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) = 24.132 / (0.705 + 20.747) = 1.12

Resource America Inc's Cash to Debt Ratio for the quarter that ended in Jun. 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) = 26.522 / (0.02 + 20.272) = 1.31

* 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.

Resource America Inc Annual Data

 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Dec13 Dec14 Dec15 cash2debt 0.60 0.44 0.03 0.14 0.17 0.11 0.11 0.26 1.56 1.13

Resource America Inc Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 cash2debt 0.20 0.20 0.35 1.56 0.12 0.12 0.07 1.13 0.88 1.31
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