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Bank of AmericaXSWX:BAC 78 Cash-to-Debt is 0.60 as of Jun. 2026, which is 22% below its 10-year median of 0.77. GuruFocus rates XSWX:BAC with a GF Score™ of 78/100 and a GF Value™ of CHF43.48. The stock has 6 warning signs investors should review. Among 1,495 Banks companies, Bank of America ranks worse than 71.37% 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. Bank of America's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.60.
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, Bank of Americacouldn'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 Bank of America's Cash-to-Debt or its related term are showing as below:
XSWX:BAC'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.6 Med: 0.77 Max: 1.37
Current: 0.6
During the past 13 years, Bank of America's highest Cash to Debt Ratio was 1.37. The lowest was 0.60. And the median was 0.77.
XSWX:BAC's Cash-to-Debt is ranked worse than 71.37% of 1495
companies
in the Banks industry
Industry Median: 1.37
vs XSWX:BAC: 0.60
Bank of America (XSWX:BAC) 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.
Bank of America Cash-to-Debt Related Terms
Bank of America Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Bank of America'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 Banks - Diversified subindustry, Bank of America'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.
Bank of America Cash-to-Debt vs Banks Industry
For the Banks industry and Financial Services sector, Bank of America's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Bank of America'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.
Bank of America (XSWX:BAC) has a Cash-to-Debt of 0.60 as of Jun. 2026. This is 22% below median its historical median of 0.77. Over the past decade, Bank of America's Cash-to-Debt has ranged from 0.60 to 1.37. According to the industry distribution chart, Bank of America ranks #1067 out of 1495 companies in the Banks industry, placing it in the top 71.4%.
Is Bank of America's Cash-to-Debt too high?
Bank of America's current Cash-to-Debt of 0.60 is 22% below median its 10-year median of 0.77. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 1.37. The Banks industry median Cash-to-Debt is 1.37. Bank of America's value of 0.60 is 56.2% below this industry median. Based on the distribution chart, Bank of America ranks #1067 out of 1495 companies in the Banks industry, which is below the industry midpoint. Overall, Bank of America has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Bank of America's Cash-to-Debt compare to WFC and C?
According to the Banks industry distribution chart, Bank of America ranks #1067 out of 1495 companies for Cash-to-Debt. This places Bank of America in the lower half of its industry. The industry median Cash-to-Debt is 1.37. Bank of America's value of 0.60 is 56.2% below this benchmark. Historically, Bank of America's own Cash-to-Debt has ranged from 0.60 to 1.37 over the past decade. While the company's 10-year median is 0.77 vs. the industry median of 1.37, Bank of America 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 Banks company?
The median Cash-to-Debt among Banks companies is 1.37, based on 1,495 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. Bank of America's current Cash-to-Debt of 0.60 is 56.2% 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 Banks industry, the median Cash-to-Debt is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank of America's current Cash-to-Debt is 0.60, which is 22% below median its own 10-year median of 0.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of America stock overvalued right now?
Bank of America (XSWX:BAC) has a current Cash-to-Debt of 0.60. The stock's GF Value™ is CHF43.48, compared to a current price of CHF52.16 — trading 20% above its estimated fair value. The current Cash-to-Debt is 0.60, which is 22% below median its 10-year median of 0.77 and 56.2% below the Banks industry median of 1.37. Bank of America's overall GF Score™ is 78/100 with 6 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 Bank of America (XSWX:BAC), the current Cash-to-Debt is 0.60 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 Bank of America (XSWX:BAC) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of America stock appears to be overvalued.
The current stock price of CHF52.16 is trading 20% above its estimated GF Value™ of CHF43.48.
Key valuation signals for XSWX:BAC:
Cash-to-Debt: 0.60 (22% below median its 10-year median of 0.77)
GF Value™: CHF43.48 vs. price of CHF52.16 (20% above fair value)
Industry Position: 56.2% below the Banks median (#1067 of 1495)
No single metric tells the full story. See the XSWX:BAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.
78GF Score
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