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Poseidon Concepts Corp (TSX:PSN)
Cash-to-Debt
0.06 (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. Poseidon Concepts Corp's cash to debt ratio for the quarter that ended in Sep. 2012 was 0.06.

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, Poseidon Concepts Corp couldn't pay off its debt using the cash in hand for the quarter that ended in Sep. 2012.

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.

Poseidon Concepts Corp's Cash to Debt Ratio for the fiscal year that ended in Dec. 2011 is calculated as:

Do not have enough data to calculate Cash to Debt ratio.

Poseidon Concepts Corp'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) = 3.461 / (0 + 55.544) = 0.06

* 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.

Poseidon Concepts Corp Annual Data

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 cash2debt 0.00 0.00 0.00 No Debt 0.00 0.06 0.01 0.00 N/A N/A

Poseidon Concepts Corp Quarterly Data

 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 cash2debt N/A N/A N/A N/A N/A N/A N/A No Debt 0.35 0.06
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