Direct Line Insurance Group (LSE:DLG) Cash-to-Debt : 3.96 (As of Dec. 2023)

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What is Direct Line Insurance Group 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. Direct Line Insurance Group's cash to debt ratio for the quarter that ended in Dec. 2023 was 3.96.

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, Direct Line Insurance Group could pay off its debt using the cash in hand for the quarter that ended in Dec. 2023.

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

LSE:DLG' s Cash-to-Debt Range Over the Past 10 Years
Min: 1.46 Med: 1.98 Max: 3.96
Current: 3.96

During the past 13 years, Direct Line Insurance Group's highest Cash to Debt Ratio was 3.96. The lowest was 1.46. And the median was 1.98.

LSE:DLG's Cash-to-Debt is ranked better than
60.71% of 481 companies
in the Insurance industry
Industry Median: 1.84 vs LSE:DLG: 3.96

Direct Line Insurance Group Cash-to-Debt Historical Data

The historical data trend for Direct Line Insurance Group'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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Direct Line Insurance Group Cash-to-Debt Chart

Direct Line Insurance Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash-to-Debt

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1.99

1.69

1.46

2.48

3.96

Direct Line Insurance Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash-to-Debt	Get a 7-Day Free Trial															1.46	1.79	2.48	3.53	3.96

Competitive Comparison of Direct Line Insurance Group's Cash-to-Debt

For the Insurance - Property & Casualty subindustry, Direct Line Insurance Group'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.

Direct Line Insurance Group's Cash-to-Debt Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Direct Line Insurance Group's Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where Direct Line Insurance Group's Cash-to-Debt falls into.

Direct Line Insurance Group Cash-to-Debt Calculation

This is the ratio of a company's Balance Sheet Cash And Cash Equivalents 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.

Direct Line Insurance Group's Cash to Debt Ratio for the fiscal year that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Balance Sheet Cash And Cash Equivalents	/	Total Debt
	=	Balance Sheet Cash And Cash Equivalents	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	1772.2	/	(82.4	+	364.9)
	=	3.96

Direct Line Insurance Group's Cash to Debt Ratio for the quarter that ended in Dec. 2023 is calculated as:

Cash to Debt Ratio	=	Balance Sheet Cash And Cash Equivalents	/	Total Debt
	=	Balance Sheet Cash And Cash Equivalents	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	1772.2	/	(82.4	+	364.9)
	=	3.96

Direct Line Insurance Group (LSE:DLG) 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.

Direct Line Insurance Group Cash-to-Debt Related Terms

Thank you for viewing the detailed overview of Direct Line Insurance Group's Cash-to-Debt provided by GuruFocus.com. Please click on the following links to see related term pages.

Direct Line Insurance Group (LSE:DLG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Direct Line Insurance Group PLC (LSE:DLG) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

DIISY:USA DIISF:USA DLGl:UK D1LN:Germany D1LN:Germany

Address

Westmoreland Road, Churchill Court, Bromley, Kent, GBR, BR1 1DP

Website

https://www.directlinegroup.co.uk

While Direct Line is one of the more focused personal lines insurers that we cover in Europe, it is still quite diversified. The business sells insurance under four divisions and those are personal lines motor, personal lines home, rescue and other personal lines, and commercial. Rescue and other personal lines include rescue, travel and pet insurance, and commercial insurance is sold to small and medium sized enterprises. Direct Line only sells insurance in United Kingdom. Direct Lines personal motor insurance division typically accounts for around 50% of total group gross written premium and the personal home insurance unit typically sells around 20%. Rescue and other personal lines account for around 10% and commercial insurance accounts for around 20%.

Direct Line Insurance Group (LSE:DLG) Headlines

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