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Rolls-Royce HoldingsRYCEF -1.20%71 Cash-to-Debt is 1.51 as of Jun. 2026, which is 110% above its 10-year median of 0.72. GuruFocus rates RYCEF with a GF Score™ of 71/100 and a GF Value™ of $10.25 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 354 Aerospace & Defense companies, Rolls-Royce Holdings ranks better than 57.34% 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. Rolls-Royce Holdings's cash to debt ratio for the quarter that ended in Jun. 2026 was 1.51.
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, Rolls-Royce Holdingscould pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Rolls-Royce Holdings's Cash-to-Debt or its related term are showing as below:
RYCEF'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.33 Med: 0.72 Max: 1.51
Current: 1.51
During the past 13 years, Rolls-Royce Holdings's highest Cash to Debt Ratio was 1.51. The lowest was 0.33. And the median was 0.72.
RYCEF's Cash-to-Debt is ranked better than 57.34% of 354
companies
in the Aerospace & Defense industry
Industry Median: 0.99
vs RYCEF: 1.51
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.
Rolls-Royce Holdings Cash-to-Debt Related Terms
Rolls-Royce Holdings Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Rolls-Royce Holdings'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 Aerospace & Defense subindustry, Rolls-Royce Holdings'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.
Rolls-Royce Holdings Cash-to-Debt vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings'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.
Rolls-Royce Holdings (RYCEF) has a Cash-to-Debt of 1.51 as of Jun. 2026. This is 110% above median its historical median of 0.72. Over the past decade, Rolls-Royce Holdings' Cash-to-Debt has ranged from 0.33 to 1.51. According to the industry distribution chart, Rolls-Royce Holdings ranks #151 out of 354 companies in the Aerospace & Defense industry, placing it in the top 42.7%.
Is Rolls-Royce Holdings' Cash-to-Debt too high?
Rolls-Royce Holdings' current Cash-to-Debt of 1.51 is 110% above median its 10-year median of 0.72. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 1.51. The Aerospace & Defense industry median Cash-to-Debt is 0.99. Rolls-Royce Holdings' value of 1.51 is 52.5% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #151 out of 354 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Rolls-Royce Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' Cash-to-Debt compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #151 out of 354 companies for Cash-to-Debt. This puts Rolls-Royce Holdings in the upper half of its industry. The industry median Cash-to-Debt is 0.99. Rolls-Royce Holdings' value of 1.51 is 52.5% above this benchmark. Historically, Rolls-Royce Holdings' own Cash-to-Debt has ranged from 0.33 to 1.51 over the past decade. While the company's 10-year median is 0.72 vs. the industry median of 0.99, Rolls-Royce Holdings has consistently been above 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 Aerospace & Defense company?
The median Cash-to-Debt among Aerospace & Defense companies is 0.99, based on 354 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. Rolls-Royce Holdings's current Cash-to-Debt of 1.51 is 52.5% above 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 Aerospace & Defense industry, the median Cash-to-Debt is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current Cash-to-Debt is 1.51, which is 110% above median its own 10-year median of 0.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rolls-Royce Holdings stock overvalued right now?
Based on GuruFocus' analysis, Rolls-Royce Holdings (RYCEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.25, compared to a current price of $20.50 — trading 100% above its estimated fair value. The current Cash-to-Debt is 1.51, which is 110% above median its 10-year median of 0.72 and 52.5% above the Aerospace & Defense industry median of 0.99. Rolls-Royce Holdings' overall GF Score™ is 71/100 with 5 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 Rolls-Royce Holdings (RYCEF), the current Cash-to-Debt is 1.51 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 Rolls-Royce Holdings (RYCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of $20.50 is trading 100% above its estimated GF Value™ of $10.25.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
Cash-to-Debt: 1.51 (110% above median its 10-year median of 0.72)
GF Value™: $10.25 vs. price of $20.50 (100% above fair value)
Industry Position: 52.5% above the Aerospace & Defense median (#151 of 354)
No single metric tells the full story. See the RYCEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.
71GF Score
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