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GuruFocus has detected 4 Warning Signs with R.R.Donnelley & Sons Co \$RRD.
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R.R.Donnelley & Sons Co (NYSE:RRD)
Cash to Debt Ratio
0.11 (As of Sep. 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. R.R.Donnelley & Sons Co's cash to debt ratio for the quarter that ended in Sep. 2016 was 0.11.

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, R.R.Donnelley & Sons Co couldn't pay off its debt using the cash in hand for the quarter that ended in Sep. 2016.

RRD' s Cash to Debt Range Over the Past 10 Years
Min: 0.02   Max: N/A
Current: 0.11

During the past 13 years, R.R.Donnelley & Sons Co's highest Cash to Debt Ratio was N/A. The lowest was 0.02. And the median was 0.08.

RRD's Cash to Debt is ranked lower than
86% of the 750 Companies
in the Global Business Services industry.

( Industry Median: 1.22 vs. RRD: 0.11 )

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.

R.R.Donnelley & Sons Co'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) = 389.6 / (234.6 + 3188.3) = 0.11

R.R.Donnelley & Sons Co's Cash to Debt Ratio for the quarter that ended in Sep. 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) = 411.8 / (255.6 + 3635.3) = 0.11

* 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.

R.R.Donnelley & Sons Co Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 cash2debt 0.09 0.09 0.08 0.15 0.15 0.12 0.13 0.27 0.15 0.11

R.R.Donnelley & Sons Co Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 cash2debt 0.08 0.07 0.15 0.07 0.08 0.07 0.11 0.07 0.08 0.11
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