Shopify (Shopify) Cash-to-Debt

: 4.36 (As of Dec. 2023)

View and export this data going back to 2015. Start your Free Trial

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. Shopify's cash to debt ratio for the quarter that ended in Dec. 2023 was 4.36.

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, Shopify could pay off its debt using the cash in hand for the quarter that ended in Dec. 2023.

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

SHOP' s Cash-to-Debt Range Over the Past 10 Years
Min: 3.62 Med: 11.93 Max: 79.21
Current: 4.36

During the past 12 years, Shopify's highest Cash to Debt Ratio was 79.21. The lowest was 3.62. And the median was 11.93.

SHOP's Cash-to-Debt is ranked better than
57.66% of 2792 companies
in the Software industry
Industry Median: 2.415 vs SHOP: 4.36

Shopify Cash-to-Debt Historical Data

The historical data trend for Shopify'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.

* Premium members only.

Shopify Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash-to-Debt

Get a 7-Day Free Trial

16.18

7.00

6.62

3.62

4.36

Shopify 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															3.62	3.48	4.22	4.38	4.36

Competitive Comparison

For the Software - Application subindustry, Shopify'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.

Shopify Cash-to-Debt Distribution

For the Software industry and Technology sector, Shopify's Cash-to-Debt distribution charts can be found below:

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

Shopify 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.

Shopify'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)
	=	5008	/	(17	+	1133)
	=	4.35

Shopify'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)
	=	5008	/	(17	+	1133)
	=	4.35

Shopify (NYSE:SHOP) 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.

Shopify Cash-to-Debt Related Terms

Thank you for viewing the detailed overview of Shopify's Cash-to-Debt provided by GuruFocus.com. Please click on the following links to see related term pages.

Shopify (Shopify) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Shopify Inc (NYSE:SHOP) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

SHOP:Mexico 307:Germany 307:Germany SHOP:Canada S2HO34:Brazil

Address

151 O'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P2L8

Website

https://www.shopify.com

Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.