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Prospect CapitalPSEC -1.10%22 Cash-to-Debt is 0.02 as of Jun. 2026, which is 33% below its 10-year median of 0.03. GuruFocus rates PSEC with a GF Score™ of 22/100. The stock has 3 warning signs investors should review. Among 1,418 Asset Management companies, Prospect Capital ranks worse than 92.67% on this metric.
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. Prospect Capital's cash to debt ratio for the quarter that ended in Jun. 2026 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, Prospect Capitalcouldn'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 Prospect Capital's Cash-to-Debt or its related term are showing as below:
PSEC'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.01 Med: 0.03 Max: 0.12
Current: 0.02
During the past 13 years, Prospect Capital's highest Cash to Debt Ratio was 0.12. The lowest was 0.01. And the median was 0.03.
PSEC's Cash-to-Debt is ranked worse than 92.67% of 1418
companies
in the Asset Management industry
Industry Median: 5.765
vs PSEC: 0.02
Prospect Capital (NAS:PSEC) 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.
Prospect Capital Cash-to-Debt Related Terms
Prospect Capital Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Prospect Capital'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 Asset Management subindustry, Prospect Capital'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.
Prospect Capital Cash-to-Debt vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Prospect Capital's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Prospect Capital'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.
Prospect Capital (PSEC) has a Cash-to-Debt of 0.02 as of Jun. 2026. This is 33% below median its historical median of 0.03. Over the past decade, Prospect Capital's Cash-to-Debt has ranged from 0.01 to 0.12. According to the industry distribution chart, Prospect Capital ranks #1314 out of 1418 companies in the Asset Management industry, placing it in the top 92.7%.
Is Prospect Capital's Cash-to-Debt too high?
Prospect Capital's current Cash-to-Debt of 0.02 is 33% below median its 10-year median of 0.03. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.12. The Asset Management industry median Cash-to-Debt is 5.77. Prospect Capital's value of 0.02 is 99.7% below this industry median. Based on the distribution chart, Prospect Capital ranks #1314 out of 1418 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Prospect Capital has a GF Score™ of 22/100, reflecting its overall financial health beyond just this single metric.
How does Prospect Capital's Cash-to-Debt compare to EOS and OCSL?
According to the Asset Management industry distribution chart, Prospect Capital ranks #1314 out of 1418 companies for Cash-to-Debt. This places Prospect Capital in the lower half of its industry. The industry median Cash-to-Debt is 5.77. Prospect Capital's value of 0.02 is 99.7% below this benchmark. Historically, Prospect Capital's own Cash-to-Debt has ranged from 0.01 to 0.12 over the past decade. While the company's 10-year median is 0.03 vs. the industry median of 5.77, Prospect Capital 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 an Asset Management company?
The median Cash-to-Debt among Asset Management companies is 5.77, based on 1,418 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. Prospect Capital's current Cash-to-Debt of 0.02 is 99.7% 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 Asset Management industry, the median Cash-to-Debt is 5.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prospect Capital's current Cash-to-Debt is 0.02, which is 33% below median its own 10-year median of 0.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Capital stock overvalued right now?
Prospect Capital (PSEC) has a current Cash-to-Debt of 0.02. The current Cash-to-Debt is 0.02, which is 33% below median its 10-year median of 0.03 and 99.7% below the Asset Management industry median of 5.77. Prospect Capital's overall GF Score™ is 22/100 with 3 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 Prospect Capital (PSEC), the current Cash-to-Debt is 0.02 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.
Prospect Capital Corp is a closed-end investment company based in the United States. Its investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. The company invests mainly in senior and subordinated debt and equity of private companies for acquisitions, divestitures, growth, development, recapitalizations, and other purposes. It makes investments, including lending in private equity, sponsored transactions, directly to companies, investments in structured credit, real estate, and syndicated debt.
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