Afterpay (Afterpay) Cash-to-Debt : 0.87 (As of Jun. 2021)

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What is Afterpay Cash-to-Debt?

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. Afterpay's cash to debt ratio for the quarter that ended in Jun. 2021 was 0.87.

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, Afterpay couldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2021.

The historical rank and industry rank for Afterpay's Cash-to-Debt or its related term are showing as below:

AFTPY' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.16 Med: 0.87 Max: 4.61
Current: 0.87

During the past 5 years, Afterpay's highest Cash to Debt Ratio was 4.61. The lowest was 0.16. And the median was 0.87.

AFTPY's Cash-to-Debt is not ranked
in the Software industry.
Industry Median: 2.49 vs AFTPY: 0.87

Afterpay Cash-to-Debt Historical Data

The historical data trend for Afterpay'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.

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Afterpay Cash-to-Debt Chart

Afterpay Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Cash-to-Debt

0.63

0.16

4.61

1.29

0.87

Afterpay Semi-Annual Data
	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21
Cash-to-Debt	Get a 7-Day Free Trial				4.61	1.03	1.29	3.86	0.87

Competitive Comparison of Afterpay's Cash-to-Debt

For the Software - Infrastructure subindustry, Afterpay'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.

Afterpay's Cash-to-Debt Distribution in the Software Industry

For the Software industry and Technology sector, Afterpay's Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where Afterpay's Cash-to-Debt falls into.

Afterpay Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

Afterpay's Cash to Debt Ratio for the fiscal year that ended in Jun. 2021 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	877.024	/	(1.683	+	1007.937)
	=	0.87

Afterpay's Cash to Debt Ratio for the quarter that ended in Jun. 2021 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	877.024	/	(1.683	+	1007.937)
	=	0.87

Afterpay (OTCPK:AFTPY) 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.

Afterpay Cash-to-Debt Related Terms

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Afterpay (Afterpay) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Afterpay Ltd (OTCPK:AFTPY) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

N/A

Address

406 Collins Street, Level 5, Melbourne, VIC, AUS, 3000

Website

https://www.afterpay.com

Afterpay started its buy now, pay later, or BNPL, financing product in calendar 2015, listed on the ASX in May 2016 and merged with Touchcorp (who designed and built Afterpay's platform software) in June 2017. Its BNPL platform allows consumers to make acquisitions at merchant partners by paying instalments every two weeks. If consumers pay on time, they transact on Afterpay for free. Afterpay primarily generates revenue from receiving a margin from the merchant. Afterpay pays the merchant the full purchase price immediately on the sale, less this margin. The margin compensates Afterpay for accepting all non-payment risk, including credit risk and fraud by the consumer, and for encouraging consumers to purchase greater dollar values and transact more frequently.