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GuruFocus has detected 2 Warning Signs with Tesco PLC \$TSCDY.
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Tesco PLC (OTCPK:TSCDY)
Cash-to-Debt
0.53 (As of Feb. 2017)

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. Tesco PLC's cash to debt ratio for the quarter that ended in Feb. 2017 was 0.53.

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, Tesco PLC couldn't pay off its debt using the cash in hand for the quarter that ended in Feb. 2017.

TSCDY' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.08   Max: 0.99
Current: 0.53

0.08
0.99

During the past 13 years, Tesco PLC's highest Cash to Debt Ratio was 0.99. The lowest was 0.08. And the median was 0.23.

TSCDY's Cash-to-Debt is ranked higher than
51% of the 360 Companies
in the Global Grocery Stores industry.

( Industry Median: 0.53 vs. TSCDY: 0.53 )

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.

Tesco PLC's Cash to Debt Ratio for the fiscal year that ended in Feb. 2017 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) = 7926.25 / (3200 + 11791.25) = 0.53

Tesco PLC's Cash to Debt Ratio for the quarter that ended in Feb. 2017 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) = 7926.25 / (3200 + 11791.25) = 0.53

* 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.

Tesco PLC Annual Data

 Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 cash2debt 0.28 0.32 0.33 0.33 0.31 0.29 0.32 0.23 0.50 0.53

Tesco PLC Semi-Annual Data

 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 cash2debt 0.36 0.29 0.23 0.32 0.36 0.23 0.20 0.50 0.57 0.53
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