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Telular Corporation (NAS:WRLS)
Cash to Debt Ratio
0.27 (As of Mar. 2013)

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. Telular Corporation's cash to debt ratio for the quarter that ended in Mar. 2013 was 0.27.

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, Telular Corporation couldn't pay off its debt using the cash in hand for the quarter that ended in Mar. 2013.

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.

Telular Corporation's Cash to Debt Ratio for the fiscal year 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) = 12.676 / (3.75 + 24.75) = 0.44

Telular Corporation's Cash to Debt Ratio for the quarter that ended in Mar. 2013 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) = 6.92 / (4.5 + 20.888) = 0.27

* 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.

Telular Corporation Annual Data

 Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 cash2debt No Debt No Debt No Debt 2.05 No Debt No Debt No Debt No Debt No Debt 0.45

Telular Corporation Quarterly Data

 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 cash2debt No Debt No Debt No Debt No Debt No Debt 0.34 0.38 0.45 0.33 0.27
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