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Spartech Corporation (NYSE:SEH)
Cash to Debt Ratio
0.01 (As of Oct. 2012)

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. Spartech Corporation's cash to debt ratio for the quarter that ended in Oct. 2012 was 0.01.

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, Spartech Corporation couldn't pay off its debt using the cash in hand for the quarter that ended in Oct. 2012.

SEH' s 10-Year Cash to Debt Range
Min: 0   Max: 0
Current: 0

SEH's Cash to Debtis ranked lower than
74% of the 1360 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 0.48 vs. SEH: 0.00 )

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.

Spartech Corporation's Cash to Debt Ratio for the fiscal year that ended in Oct. 2012 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=1.092 / (22.636 + 112.288)
=0.01

Spartech Corporation's Cash to Debt Ratio for the quarter that ended in Oct. 2012 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=1.092 / (22.636 + 112.288)
=0.01

* 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.

Spartech Corporation Annual Data

Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
cash2debt 0.020.100.010.020.010.010.120.030.010.01

Spartech Corporation Quarterly Data

Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
cash2debt 0.010.030.020.020.010.010.000.010.010.01
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