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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. Ares Acquisition II's cash to debt ratio for the quarter that ended in Jun. 2025 was 0.02.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Ares Acquisition IIcouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2025.
The historical rank and industry rank for Ares Acquisition II's Cash-to-Debt or its related term are showing as below:
AACT's Cash-to-Debt is not ranked *
in the Diversified Financial Services industry.
Industry Median: 9.035 * Ranked among companies with meaningful Cash-to-Debt only.
Ares Acquisition II (NYSE:AACT) Cash-to-Debt 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.
Ares Acquisition II Cash-to-Debt Related Terms
Ares Acquisition II Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Ares Acquisition II's Cash-to-Debt can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Shell Companies subindustry, Ares Acquisition II's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ares Acquisition II Cash-to-Debt vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Ares Acquisition II's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Ares Acquisition II's Cash-to-Debt falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ares Acquisition II (AACT) has a Cash-to-Debt of 0.02 as of Jun. 2025.
Is Ares Acquisition II's Cash-to-Debt too high?
Ares Acquisition II's current Cash-to-Debt is 0.02. The Diversified Financial Services industry median Cash-to-Debt is 9.04. Ares Acquisition II's value of 0.02 is 99.8% below this industry median. Overall, Ares Acquisition II has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Ares Acquisition II's Cash-to-Debt compare to EVAC and CEPF?
Ares Acquisition II's Cash-to-Debt of 0.02 can be compared against companies in the Diversified Financial Services industry. The industry median Cash-to-Debt is 9.04. Ares Acquisition II's value of 0.02 is 99.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Diversified Financial Services company?
The median Cash-to-Debt among Diversified Financial Services companies is 9.04, based on 500 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ares Acquisition II's current Cash-to-Debt of 0.02 is 99.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Diversified Financial Services industry, the median Cash-to-Debt is 9.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ares Acquisition II's current Cash-to-Debt is 0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ares Acquisition II stock overvalued right now?
Ares Acquisition II (AACT) has a current Cash-to-Debt of 0.02. The current Cash-to-Debt is 0.02 and 99.8% below the Diversified Financial Services industry median of 9.04. Ares Acquisition II's overall GF Score™ is 22/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Ares Acquisition II (AACT), the current Cash-to-Debt is 0.02 as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
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