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Electro Rent Corp  (NAS:ELRC) Cash-to-Debt: No Debt (As of Feb. 2016)

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. Electro Rent Corp's cash to debt ratio for the quarter that ended in Feb. 2016 was No Debt.

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, Electro Rent Corp could pay off its debt using the cash in hand for the quarter that ended in Feb. 2016.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Electro Rent Corp Annual Data

May06 May07 May08 May09 May10 May11 May12 May13 May14 May15
Cash-to-Debt Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10,000.00 10,000.00 1.04 10,000.00 1.70

Electro Rent Corp Quarterly Data

May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16
Cash-to-Debt Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10,000.00 1.70 10,000.00 10,000.00 10,000.00

Competitive Comparison
* 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.


Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Current Portion of Long-Term Debt and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

Electro Rent Corp's Cash to Debt Ratio for the fiscal year that ended in May. 2015 is calculated as:

Electro Rent Corp's Cash to Debt Ratio for the quarter that ended in Feb. 2016 is calculated as:

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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.


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