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Two Harbors Investment Corp (NYSE:TWO)
Cash to Debt Ratio
16.96 (As of Sep. 2014)

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash and cash equivalents divide by its debt. Two Harbors Investment Corp's cash to debt ratio for the quarter that ended in Sep. 2014 was 16.96.

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, Two Harbors Investment Corp could pay off its debt using the cash in hand for the quarter that ended in Sep. 2014.

TWO' s 10-Year Cash to Debt Range
Min: 0.18   Max: No Debt
Current: 16.96

During the past 7 years, Two Harbors Investment Corp's highest Cash to Debt Ratio was No Debt. The lowest was 0.18. And the median was No Debt.

TWO's Cash to Debtis ranked higher than
94% of the 809 Companies
in the Global REIT - Residential industry.

( Industry Median: 0.05 vs. TWO: 16.96 )

Definition

This is the ratio of a company's Cash and cash equivalents 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.

Two Harbors Investment Corp's Cash to Debt Ratio for the fiscal year that ended in Dec. 2013 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=14282.394 / (0 + 639.731)
=22.33

Two Harbors Investment Corp's Cash to Debt Ratio for the quarter that ended in Sep. 2014 is calculated as:

Cash to Debt Ratio=Cash and Cash Equivalents / Total Debt
=Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt)
=15916.313 / (0 + 938.506)
=16.96

* 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

Current Portion of Long-Term Debt, Long-Term Debt, Cash and Cash Equivalents (For Banks and Insurance Companies), Cash and Cash Equivalents


Historical Data

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

Two Harbors Investment Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
cash2debt 0.000.000.00No DebtNo Debt1.26No DebtNo DebtNo Debt22.33

Two Harbors Investment Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
cash2debt 1.18No DebtNo Debt43.9946.3122.1822.3323.0327.2216.96
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