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Volvo ABVOLAF +7.35%86 Cash-to-Debt is 0.18 as of Jun. 2026, which is 36% below its 10-year median of 0.28. GuruFocus rates VOLAF with a GF Score™ of 86/100 and a GF Value™ of $25.50 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 208 Farm & Heavy Construction Machinery companies, Volvo AB ranks worse than 78.85% 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. Volvo AB's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.18.
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, Volvo ABcouldn'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 Volvo AB's Cash-to-Debt or its related term are showing as below:
VOLAF'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.17 Med: 0.28 Max: 0.51
Current: 0.18
During the past 13 years, Volvo AB's highest Cash to Debt Ratio was 0.51. The lowest was 0.17. And the median was 0.28.
VOLAF's Cash-to-Debt is ranked worse than 78.85% of 208
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 0.63
vs VOLAF: 0.18
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.
Volvo AB Cash-to-Debt Related Terms
Volvo AB Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Volvo AB'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 Farm & Heavy Construction Machinery subindustry, Volvo AB'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.
Volvo AB Cash-to-Debt vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Volvo AB's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Volvo AB'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.
Volvo AB (VOLAF) has a Cash-to-Debt of 0.18 as of Jun. 2026. This is 36% below median its historical median of 0.28. Over the past decade, Volvo AB's Cash-to-Debt has ranged from 0.17 to 0.51. According to the industry distribution chart, Volvo AB ranks #164 out of 208 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 78.8%.
Is Volvo AB's Cash-to-Debt too high?
Volvo AB's current Cash-to-Debt of 0.18 is 36% below median its 10-year median of 0.28. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 0.51. The Farm & Heavy Construction Machinery industry median Cash-to-Debt is 0.63. Volvo AB's value of 0.18 is 71.4% below this industry median. Based on the distribution chart, Volvo AB ranks #164 out of 208 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Volvo AB has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Volvo AB's Cash-to-Debt compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Volvo AB ranks #164 out of 208 companies for Cash-to-Debt. This places Volvo AB in the lower half of its industry. The industry median Cash-to-Debt is 0.63. Volvo AB's value of 0.18 is 71.4% below this benchmark. Historically, Volvo AB's own Cash-to-Debt has ranged from 0.17 to 0.51 over the past decade. While the company's 10-year median is 0.28 vs. the industry median of 0.63, Volvo AB 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 Farm & Heavy Construction Machinery company?
The median Cash-to-Debt among Farm & Heavy Construction Machinery companies is 0.63, based on 208 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. Volvo AB's current Cash-to-Debt of 0.18 is 71.4% 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 Farm & Heavy Construction Machinery industry, the median Cash-to-Debt is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Volvo AB's current Cash-to-Debt is 0.18, which is 36% below median its own 10-year median of 0.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Volvo AB stock overvalued right now?
Based on GuruFocus' analysis, Volvo AB (VOLAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $25.50, compared to a current price of $36.66 — trading 43.8% above its estimated fair value. The current Cash-to-Debt is 0.18, which is 36% below median its 10-year median of 0.28 and 71.4% below the Farm & Heavy Construction Machinery industry median of 0.63. Volvo AB's overall GF Score™ is 86/100 with 9 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 Volvo AB (VOLAF), the current Cash-to-Debt is 0.18 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 Volvo AB (VOLAF) Overvalued in 2026?
Based on GuruFocus' analysis, Volvo AB stock appears to be overvalued.
The current stock price of $36.66 is trading 43.8% above its estimated GF Value™ of $25.50.
GuruFocus considers Volvo AB to be Significantly Overvalued.
Key valuation signals for VOLAF:
Cash-to-Debt: 0.18 (36% below median its 10-year median of 0.28)
GF Value™: $25.50 vs. price of $36.66 (43.8% above fair value)
Industry Position: 71.4% below the Farm & Heavy Construction Machinery median (#164 of 208)
No single metric tells the full story. See the VOLAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Volvo Group is one of the largest global truck, bus, construction equipment, and engine and power system original equipment manufacturers, operating with the Volvo, Renault Truck, Mack Trucks, Volvo Penta, and Nova Bus brands. Among the four largest Western global brands—Volvo, Daimler, Paccar, and Traton—Volvo ranks third in terms of annual deliveries. Its truck, construction equipment, bus, and engines and power system segments contributed 71%, 18%, 5%, and 5%, respectively, to industrial operations' revenue in 2025. An in-house financial services division supports these businesses. In its key regions of Europe, North America, Brazil, and Australia, the truck business holds large market shares of 29%, 17%, 24%, and 22%, respectively.
86GF Score
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