Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Cash-to-Debt : 0.52 (As of Mar. 2024)

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What is Ali Alghanim Sons Automotive Co KSC 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. Ali Alghanim Sons Automotive Co KSC's cash to debt ratio for the quarter that ended in Mar. 2024 was 0.52.

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, Ali Alghanim Sons Automotive Co KSC couldn't pay off its debt using the cash in hand for the quarter that ended in Mar. 2024.

The historical rank and industry rank for Ali Alghanim Sons Automotive Co KSC's Cash-to-Debt or its related term are showing as below:

KUW:ALG' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.46 Med: 0.66 Max: 1.04
Current: 0.52

During the past 3 years, Ali Alghanim Sons Automotive Co KSC's highest Cash to Debt Ratio was 1.04. The lowest was 0.46. And the median was 0.66.

KUW:ALG's Cash-to-Debt is ranked worse than
52.21% of 1243 companies
in the Vehicles & Parts industry
Industry Median: 0.58 vs KUW:ALG: 0.52

Ali Alghanim Sons Automotive Co KSC Cash-to-Debt Historical Data

The historical data trend for Ali Alghanim Sons Automotive Co KSC'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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Ali Alghanim Sons Automotive Co KSC Cash-to-Debt Chart

Ali Alghanim Sons Automotive Co KSC Annual Data

Trend

Dec21

Dec22

Dec23

Cash-to-Debt

0.73

0.67

0.46

Ali Alghanim Sons Automotive Co KSC Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Cash-to-Debt	Get a 7-Day Free Trial							0.93	0.50	0.46	0.46	0.52

Competitive Comparison of Ali Alghanim Sons Automotive Co KSC's Cash-to-Debt

For the Auto & Truck Dealerships subindustry, Ali Alghanim Sons Automotive Co KSC'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.

Ali Alghanim Sons Automotive Co KSC's Cash-to-Debt Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ali Alghanim Sons Automotive Co KSC's Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where Ali Alghanim Sons Automotive Co KSC's Cash-to-Debt falls into.

Ali Alghanim Sons Automotive Co KSC 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.

Ali Alghanim Sons Automotive Co KSC'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)
	=	18.797	/	(6.635	+	34.101)
	=	0.46

Ali Alghanim Sons Automotive Co KSC's Cash to Debt Ratio for the quarter that ended in Mar. 2024 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)
	=	18.998	/	(3.369	+	33.324)
	=	0.52

Ali Alghanim Sons Automotive Co KSC (KUW:ALG) 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.

Ali Alghanim Sons Automotive Co KSC Cash-to-Debt Related Terms

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Ali Alghanim Sons Automotive Co KSC (KUW:ALG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Ali Alghanim Sons Automotive Co KSC (KUW:ALG) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

N/A

Address

Airport Road 55, P.O. Box 21540, Safat, Opposite Kaifan Telecommunication, Shuwaikh, KWT, 13076

Website

https://alg.com.kw

Ali Alghanim Sons Automotive Co KSC is engaged in the automotive business. The Primary Activities of the Company are selling and purchasing cars and spare parts, importing and exporting light and heavy vehicles and cars, renting cars, maintaining light & heavy vehicles and cars, trading auto spare parts, and renting equipment and their maintenance. The Group is divided into four main geographical segments which are the State of Kuwait, Iraq, Egypt and the United Arab Emirates. The majority is derived from Kuwait.