Switch to:
Walgreen Co (NYSE:WAG)
Cash to Debt Ratio
0.59 (As of Aug. 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. Walgreen Co's cash to debt ratio for the quarter that ended in Aug. 2014 was 0.59.

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

WAG' s 10-Year Cash to Debt Range
Min: 0.04   Max: No Debt
Current: 0.59

During the past 13 years, Walgreen Co's highest Cash to Debt Ratio was No Debt. The lowest was 0.04. And the median was No Debt.

WAG's Cash to Debtis ranked higher than
75% of the 559 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 0.48 vs. WAG: 0.59 )

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.

Walgreen Co's Cash to Debt Ratio for the fiscal year that ended in Aug. 2014 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents / Total Debt = Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt) = 2646 / (774 + 3736) = 0.59

Walgreen Co's Cash to Debt Ratio for the quarter that ended in Aug. 2014 is calculated as:

 Cash to Debt Ratio = Cash and Cash Equivalents / Total Debt = Cash and Cash Equivalents / (Short-Term Debt + Long-Term Debt) = 2646 / (774 + 3736) = 0.59

* 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.

Walgreen Co Annual Data

 Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 cash2debt No Debt No Debt 0.29 0.31 1.10 0.78 0.65 0.24 0.42 0.59

Walgreen Co Quarterly Data

 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 cash2debt 0.83 0.24 0.29 0.38 0.47 0.42 0.19 0.35 0.47 0.59
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)