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Prosperity ResourcesASX:PSP Cash-to-Debt is 0.02 as of Jun. 2016, which is 100% below its 10-year median of 5,001.30. The stock has 4 warning signs investors should review.
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. Prosperity Resources's cash to debt ratio for the quarter that ended in Jun. 2016 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, Prosperity Resourcescouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2016.
The historical rank and industry rank for Prosperity Resources's Cash-to-Debt or its related term are showing as below:
ASX:PSP'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.04 Med: 5001.3 Max: No Debt
Current: 0.04
During the past 13 years, Prosperity Resources's highest Cash to Debt Ratio was No Debt. The lowest was 0.04. And the median was 5001.30.
ASX:PSP's Cash-to-Debt is not ranked
in the Metals & Mining industry.
Industry Median: 34.325
vs ASX:PSP: 0.04
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.
Prosperity Resources Cash-to-Debt Related Terms
Prosperity Resources Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Prosperity Resources'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 Gold subindustry, Prosperity Resources'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.
Prosperity Resources Cash-to-Debt vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Prosperity Resources's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Prosperity Resources'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.
Prosperity Resources (ASX:PSP) has a Cash-to-Debt of 0.02 as of Jun. 2016. This is 100% below median its historical median of 5,001.30. Over the past decade, Prosperity Resources' Cash-to-Debt has ranged from 0.04 to 10,000.00.
Is Prosperity Resources' Cash-to-Debt too high?
Prosperity Resources' current Cash-to-Debt of 0.02 is 100% below median its 10-year median of 5,001.30. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 10,000.00. The Metals & Mining industry median Cash-to-Debt is 34.33. Prosperity Resources' value of 0.02 is 99.9% below this industry median.
How does Prosperity Resources' Cash-to-Debt compare to competitors?
Prosperity Resources' Cash-to-Debt of 0.02 can be compared against companies in the Metals & Mining industry. The industry median Cash-to-Debt is 34.33. Prosperity Resources' value of 0.02 is 99.9% below this benchmark. Historically, Prosperity Resources' own Cash-to-Debt has ranged from 0.04 to 10,000.00 over the past decade. While the company's 10-year median is 5,001.30 vs. the industry median of 34.33, Prosperity Resources has consistently been below the industry average. 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 Metals & Mining company?
The median Cash-to-Debt among Metals & Mining companies is 34.33, based on 2,616 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. Prosperity Resources's current Cash-to-Debt of 0.02 is 99.9% 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 Metals & Mining industry, the median Cash-to-Debt is 34.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prosperity Resources's current Cash-to-Debt is 0.02, which is 100% below median its own 10-year median of 5,001.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosperity Resources stock overvalued right now?
Prosperity Resources (ASX:PSP) has a current Cash-to-Debt of 0.02. The current Cash-to-Debt is 0.02, which is 100% below median its 10-year median of 5,001.30 and 99.9% below the Metals & Mining industry median of 34.33. 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 Prosperity Resources (ASX:PSP), the current Cash-to-Debt is 0.02 as of Jun. 2016. 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.
Prosperity Resources Limited (PSP) is an exploration company for gold and iron ore in the Murchison greenstone belt of Western Australia and copper/gold in the Tennant Creek Goldfield of Northern Territory.
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