Fred's (STU:FR1A) Cash-to-Debt : 0.08 (As of Apr. 2019)

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What is Fred's 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. Fred's's cash to debt ratio for the quarter that ended in Apr. 2019 was 0.08.

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, Fred's couldn't pay off its debt using the cash in hand for the quarter that ended in Apr. 2019.

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

STU:FR1A's Cash-to-Debt is not ranked ^*
in the Retail - Defensive industry.
Industry Median: 0.43
* Ranked among companies with meaningful Cash-to-Debt only.

Fred's Cash-to-Debt Historical Data

The historical data trend for Fred's'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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Fred's Cash-to-Debt Chart

Fred's Annual Data

Trend

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Cash-to-Debt

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0.98

0.11

0.05

0.04

0.07

Fred's Quarterly Data
	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Apr20
Cash-to-Debt	Get a 7-Day Free Trial															0.04	0.03	0.07	0.08	1.73

Competitive Comparison of Fred's's Cash-to-Debt

For the Discount Stores subindustry, Fred's'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.

Fred's's Cash-to-Debt Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Fred's's Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where Fred's's Cash-to-Debt falls into.

Fred's Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities 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.

Fred's's Cash to Debt Ratio for the fiscal year that ended in Jan. 2019 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	4.689	/	(51.37	+	12.655)
	=	0.07

Fred's's Cash to Debt Ratio for the quarter that ended in Apr. 2019 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	6.394	/	(71.762	+	12.842)
	=	0.08

Fred's (STU:FR1A) 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.

Fred's Cash-to-Debt Related Terms

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Fred's (STU:FR1A) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Fred's Inc (STU:FR1A) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

N/A

Address

4300 New Getwell Road, Memphis, TN, USA, 38118

Website

http://www.fredsinc.com

Fred's Inc is a U.S.-based company that is principally engaged in operating retail stores. Most of the company's stores are self-owned stores, with a few franchised stores. The company's sales mix consists of pharmaceuticals, consumables, household goods and softlines, and franchise, with pharmaceuticals contributing a material portion of total revenue. The company owns 100% of the equity stake in Reeves-Sain Drug Store. The company generates revenue from merchandise sales and franchise fee from franchisees. It also sells gift cards. The company conducts operation primarily in the southeast of the United States.

Fred's (STU:FR1A) Headlines

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