Air Canada (Air Canada) Cash-to-Debt : 0.62 (As of Dec. 2023)

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What is Air Canada 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. Air Canada's cash to debt ratio for the quarter that ended in Dec. 2023 was 0.62.

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, Air Canada couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2023.

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

ACDVF' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.41 Med: 0.48 Max: 0.64
Current: 0.62

During the past 13 years, Air Canada's highest Cash to Debt Ratio was 0.64. The lowest was 0.41. And the median was 0.48.

ACDVF's Cash-to-Debt is ranked better than
57.41% of 965 companies
in the Transportation industry
Industry Median: 0.49 vs ACDVF: 0.62

Air Canada Cash-to-Debt Historical Data

The historical data trend for Air Canada'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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Air Canada Cash-to-Debt Chart

Air Canada Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash-to-Debt

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0.64

0.58

0.54

0.49

0.62

Air Canada Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash-to-Debt	Get a 7-Day Free Trial															0.49	0.53	0.58	0.58	0.62

Competitive Comparison of Air Canada's Cash-to-Debt

For the Airlines subindustry, Air Canada'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.

Air Canada's Cash-to-Debt Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Air Canada's Cash-to-Debt distribution charts can be found below:

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

Air Canada 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.

Air Canada's Cash to Debt Ratio for the fiscal year that ended in Dec. 2023 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)
	=	6373.733	/	(645.498	+	9686.941)
	=	0.62

Air Canada's Cash to Debt Ratio for the quarter that ended in Dec. 2023 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)
	=	6373.733	/	(645.498	+	9686.941)
	=	0.62

Air Canada (OTCPK:ACDVF) 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.

Air Canada Cash-to-Debt Related Terms

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Air Canada (Air Canada) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Air Canada (OTCPK:ACDVF) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

ADH2:Germany AC:Canada

Address

7373 Cote Vertu Boulevard West, Air Canada Centre, Saint-Laurent, QC, CAN, H4S 1Z3

Website

https://www.aircanada.com

Air Canada is Canada's largest airline, generally serving nearly 50 million passengers each year together with its low-cost sub-brand called Rouge and contracts for regional connection flights to its network. Air Canada is a sixth freedom airline, similar to Gulf carriers, which flies many U.S. nationals on long-haul trips with a layover in Canada. In 2022, the company generated CAD 16.6 billion in total revenue, down from CAD 19 billion in 2019 as the airline is still recovering from the pandemic and related travel restrictions.