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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. Applied Digital's cash to debt ratio for the quarter that ended in May. 2026 was 0.31.
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, Applied Digitalcouldn't pay off its debt using the cash in hand for the quarter that ended in May. 2026.
The historical rank and industry rank for Applied Digital's Cash-to-Debt or its related term are showing as below:
XSWX:APLD'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.03 Med: 0.31 Max: 5.5
Current: 0.31
During the past 13 years, Applied Digital's highest Cash to Debt Ratio was 5.50. The lowest was 0.03. And the median was 0.31.
XSWX:APLD's Cash-to-Debt is ranked worse than 81.75% of 2849
companies
in the Software industry
Industry Median: 2.57
vs XSWX:APLD: 0.31
Applied Digital (XSWX:APLD) 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.
Applied Digital Cash-to-Debt Related Terms
Applied Digital Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Applied Digital'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.
XSWX:APLD vs INGM, GDS, PSN: Cash-to-Debt Comparison
For the Information Technology Services subindustry, Applied Digital'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.
Applied Digital Cash-to-Debt vs Software Industry
For the Software industry and Technology sector, Applied Digital's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Applied Digital'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.
Applied Digital (XSWX:APLD) has a Cash-to-Debt of 0.31 as of May. 2026. This is near median its historical median of 0.31. Over the past decade, Applied Digital's Cash-to-Debt has ranged from 0.03 to 5.50. According to the industry distribution chart, Applied Digital ranks #2329 out of 2849 companies in the Software industry, placing it in the top 81.7%.
Is Applied Digital's Cash-to-Debt too high?
Applied Digital's current Cash-to-Debt of 0.31 is near median its 10-year median of 0.31. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 5.50. The Software industry median Cash-to-Debt is 2.57. Applied Digital's value of 0.31 is 87.9% below this industry median. Based on the distribution chart, Applied Digital ranks #2329 out of 2849 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Applied Digital has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Cash-to-Debt compare to INGM and GDS?
According to the Software industry distribution chart, Applied Digital ranks #2329 out of 2849 companies for Cash-to-Debt. This places Applied Digital in the lower half of its industry. The industry median Cash-to-Debt is 2.57. Applied Digital's value of 0.31 is 87.9% below this benchmark. Historically, Applied Digital's own Cash-to-Debt has ranged from 0.03 to 5.50 over the past decade. While the company's 10-year median is 0.31 vs. the industry median of 2.57, Applied Digital 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 Software company?
The median Cash-to-Debt among Software companies is 2.57, based on 2,849 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. Applied Digital's current Cash-to-Debt of 0.31 is 87.9% 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 Software industry, the median Cash-to-Debt is 2.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current Cash-to-Debt is 0.31, which is near median its own 10-year median of 0.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Cash-to-Debt of 0.31. The stock's GF Value™ is CHF17.05, compared to a current price of CHF23.67 — trading 38.8% above its estimated fair value. The current Cash-to-Debt is 0.31, which is near median its 10-year median of 0.31 and 87.9% below the Software industry median of 2.57. Applied Digital's overall GF Score™ is 48/100 with 7 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 Applied Digital (XSWX:APLD), the current Cash-to-Debt is 0.31 as of May. 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 Applied Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF23.67 is trading 38.8% above its estimated GF Value™ of CHF17.05.
Key valuation signals for XSWX:APLD:
Cash-to-Debt: 0.31 (near median its 10-year median of 0.31)
GF Value™: CHF17.05 vs. price of CHF23.67 (38.8% above fair value)
Industry Position: 87.9% below the Software median (#2329 of 2849)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
48GF Score
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