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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. British American Tobacco's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.07.
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, British American Tobaccocouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for British American Tobacco's Cash-to-Debt or its related term are showing as below:
CHIX:BATSl'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.05 Med: 0.07 Max: 0.17
Current: 0.07
During the past 13 years, British American Tobacco's highest Cash to Debt Ratio was 0.17. The lowest was 0.05. And the median was 0.07.
CHIX:BATSl's Cash-to-Debt is ranked worse than 84.78% of 46
companies
in the Tobacco Products industry
Industry Median: 1
vs CHIX:BATSl: 0.07
British American Tobacco (CHIX:BATSl) 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.
British American Tobacco Cash-to-Debt Related Terms
British American Tobacco Cash-to-Debt Historical Data
* 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.
CHIX:BATSL vs PM, MO, TPB: Cash-to-Debt Comparison
For the Tobacco subindustry, British American Tobacco'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.
British American Tobacco Cash-to-Debt vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where British American Tobacco'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.
British American Tobacco (CHIX:BATSL) has a Cash-to-Debt of 0.07 as of Jun. 2026. This is near median its historical median of 0.07. Over the past decade, British American Tobacco's Cash-to-Debt has ranged from 0.05 to 0.17. According to the industry distribution chart, British American Tobacco ranks #39 out of 46 companies in the Tobacco Products industry, placing it in the top 84.8%.
Is British American Tobacco's Cash-to-Debt too high?
British American Tobacco's current Cash-to-Debt of 0.07 is near median its 10-year median of 0.07. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 0.17. The Tobacco Products industry median Cash-to-Debt is 1.00. British American Tobacco's value of 0.07 is 93% below this industry median. Based on the distribution chart, British American Tobacco ranks #39 out of 46 companies in the Tobacco Products industry, which is in the bottom quartile relative to peers. Overall, British American Tobacco has a GF Score™ of 70/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's Cash-to-Debt compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #39 out of 46 companies for Cash-to-Debt. This places British American Tobacco in the lower half of its industry. The industry median Cash-to-Debt is 1.00. British American Tobacco's value of 0.07 is 93% below this benchmark. Historically, British American Tobacco's own Cash-to-Debt has ranged from 0.05 to 0.17 over the past decade. While the company's 10-year median is 0.07 vs. the industry median of 1.00, British American Tobacco 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 Tobacco Products company?
The median Cash-to-Debt among Tobacco Products companies is 1.00, based on 46 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. British American Tobacco's current Cash-to-Debt of 0.07 is 93% 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 Tobacco Products industry, the median Cash-to-Debt is 1.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current Cash-to-Debt is 0.07, which is near median its own 10-year median of 0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is British American Tobacco stock overvalued right now?
Based on GuruFocus' analysis, British American Tobacco (CHIX:BATSL) is currently considered Modestly Overvalued. The stock's GF Value™ is £31.56, compared to a current price of £40.26 — trading 27.6% above its estimated fair value. The current Cash-to-Debt is 0.07, which is near median its 10-year median of 0.07 and 93% below the Tobacco Products industry median of 1.00. British American Tobacco's overall GF Score™ is 70/100 with 2 warning signs to review. 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 British American Tobacco (CHIX:BATSL), the current Cash-to-Debt is 0.07 as of Jun. 2026. 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.
Is British American Tobacco (CHIX:BATSL) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco stock appears to be overvalued.
The current stock price of £40.26 is trading 27.6% above its estimated GF Value™ of £31.56.
GuruFocus considers British American Tobacco to be Modestly Overvalued.
Key valuation signals for CHIX:BATSL:
Cash-to-Debt: 0.07 (near median its 10-year median of 0.07)
GF Value™: £31.56 vs. price of £40.26 (27.6% above fair value)
Industry Position: 93% below the Tobacco Products median (#39 of 46)
No single metric tells the full story. See the CHIX:BATSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The third-largest tobacco company by volume, British American Tobacco sold 465 billion cigarettes in 2025. Its leading brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans in cigarettes. Its ownership of the Camel, Natural American Spirit, and Newport brands are limited to the US. In next-generation products, the company has the Vuse brand in vaping, Glo in heated tobacco, and Velo in modern oral tobacco. The company also owns a 22.9% stake in ITC limited, the largest Indian cigarette company.
70GF Score
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