Cash to debt ratio counts as Cash & Equivalents divided by Total debt. It is not calculated for banks and varias based on how a company’s balance sheet is prepared and the sector or industry it is in.
Cash equivalents / Total debt
This ratio indicates a general financial condition of a company. A high ratio indicates a company can pay off its debt and remain solvent into the foreseeable future. In addition, it also means that if necessary, the company can take on a larger amount of debt because it has the cash to support that.