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Staples Inc (NAS:SPLS)
Cash to Debt Ratio
1.03 (As of Oct. 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. Staples Inc's cash to debt ratio for the quarter that ended in Oct. 2016 was 1.03.

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, Staples Inc could pay off its debt using the cash in hand for the quarter that ended in Oct. 2016.

SPLS' s Cash to Debt Range Over the Past 10 Years
Min: 0   Max: 3.48
Current: 1.03

0
3.48

During the past 13 years, Staples Inc's highest Cash to Debt Ratio was 3.48. The lowest was 0.00. And the median was 0.58.

SPLS's Cash to Debt is ranked higher than
53% of the 954 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.84 vs. SPLS: 1.03 )

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.

Staples Inc's Cash to Debt Ratio for the fiscal year that ended in Jan. 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) = 825 / (17 + 1018) = 0.80

Staples Inc's Cash to Debt Ratio for the quarter that ended in Oct. 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) = 1076 / (23 + 1024) = 1.03

* 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.

Staples Inc Annual Data

 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 cash2debt 2.85 3.48 0.18 0.55 0.56 0.62 0.67 0.45 0.57 0.80

Staples Inc Quarterly Data

 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 cash2debt 0.37 0.69 0.57 0.71 0.55 0.76 0.80 0.27 0.63 1.03
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