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Titanium Metals Corporation (NYSE:TIE)
Cash to Debt Ratio
0.20 (As of Sep. 2012)

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. Titanium Metals Corporation's cash to debt ratio for the quarter that ended in Sep. 2012 was 0.20.

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

TIE' s Cash to Debt Range Over the Past 10 Years
Min: 0.13   Max: No Debt
Current: 0.2

During the past 13 years, Titanium Metals Corporation's highest Cash to Debt Ratio was No Debt. The lowest was 0.13. And the median was 3.74.

TIE's Cash to Debt is ranked lower than
100% of the Companies
in the Global industry.

( Industry Median: vs. TIE: 0.20 )

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.

Titanium Metals Corporation's Cash to Debt Ratio for the fiscal year that ended in Dec. 2011 is calculated as:

Titanium Metals Corporation had no debt.

Titanium Metals Corporation's Cash to Debt Ratio for the quarter that ended in Sep. 2012 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) = 20.6 / (0.5 + 104.8) = 0.20

* 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.

Titanium Metals Corporation Annual Data

 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 cash2debt 0.21 3.41 0.13 0.31 No Debt No Debt No Debt No Debt No Debt No Debt

Titanium Metals Corporation Semi-Annual Data

 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 cash2debt No Debt No Debt No Debt No Debt No Debt No Debt No Debt 1.25 0.29 0.20
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