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TIBCO Software Inc (NAS:TIBX)
Cash to Debt Ratio
0.96 (As of Aug. 2014)

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. TIBCO Software Inc's cash to debt ratio for the quarter that ended in Aug. 2014 was 0.96.

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

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.

TIBCO Software Inc's Cash to Debt Ratio for the fiscal year that ended in Nov. 2013 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) = 745.951 / (0 + 540.022) = 1.38

TIBCO Software Inc's Cash to Debt Ratio for the quarter that ended in Aug. 2014 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) = 532.454 / (0 + 552.266) = 0.96

* 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

TIBCO Software Inc Annual Data

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 cash2debt 9.13 9.53 11.16 5.72 6.00 6.89 6.08 4.53 1.36 1.38

TIBCO Software Inc Quarterly Data

 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 cash2debt 1.17 1.21 1.36 1.43 1.37 1.35 1.38 1.40 1.06 0.96
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