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Zipcar Inc (NAS:ZIP)
Cash to Debt Ratio
0.62 (As of Dec. 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. Zipcar Inc's cash to debt ratio for the quarter that ended in Dec. 2012 was 0.62.

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, Zipcar Inc couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2012.

ZIP' s Cash to Debt Range Over the Past 10 Years
Min: 0.25   Max: 1.31
Current: 0.62

0.25
1.31

During the past 5 years, Zipcar Inc's highest Cash to Debt Ratio was 1.31. The lowest was 0.25. And the median was 0.62.

ZIP's Cash to Debt is ranked lower than
99.99% of the 90 Companies
in the Global Personal Services industry.

( Industry Median: 0.98 vs. ZIP: 0.62 )

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.

Zipcar Inc's Cash to Debt Ratio for the fiscal year that ended in Dec. 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) = 67.493 / (14.424 + 94.716) = 0.62

Zipcar Inc's Cash to Debt Ratio for the quarter that ended in Dec. 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) = 67.493 / (14.424 + 94.716) = 0.62

* 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.

Zipcar Inc Annual Data

 Dec08 Dec09 Dec10 Dec11 Dec12 cash2debt 0.00 0.00 0.00 0.00 0.00 1.24 1.26 0.46 1.23 0.62

Zipcar Inc Quarterly Data

 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 cash2debt 0.25 0.46 0.40 1.31 1.17 1.23 0.95 0.52 0.49 0.62
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