On the other hand, the cash debt coverage ratio compares the company's operational cash to its total debt. Therefore, it is crucial to use the cash debt coverage ratio as a measure of the company's ability to use the cash it generates to pay off its debt. The cash debt coverage ratio...
By calculating the current cash debt coverage ratio or the current cash flow to debt ratio, you can gain valuable insights into the company's financial health and its ability to meet its financial obligations. This measure provides a clear picture of a company's financial strength by analyzing ...
Cash Flow Coverage Ratio Calculator is a tool that helps in calculating whether a company’s cash flows from its operations can pay off its debt. This ratio is useful for creditors, banks, investors, and managers of the company to get an idea of how well the company is performing financiall...
As a general rule of thumb, a higher cash flow adequacy ratio is preferable because it implies the company’s operating cash flows are adequate to cover its spending related to capex, debt repayments and dividends. CFA Ratio = 1.0x → Sufficient but Limited Room for Error CFA Ratio > 1.0...
Cash flow to debt ratio as the name suggests compares the total cash flow to total debt due by the company. It is one of the coverage ratios.
LesseeLoan to Value Ratio (LTV)Loan to Purchase Price (LTPP)Loan to Cost Ratio (LTC)Debt Service Coverage Ratio (DSCR)Debt to Income Ratio (DTI)Combined Loan to Value (CLTV)Proof of Funds (POF)Debt ServiceCommercial Banking and Retail Brokerage Commercial Real Estate Loan Structure ...
Do you remember free cash flow calculator (also called FCF)? Well, levered free cash flow is a related concept that considers the company has already paid its mandatory debt for the period. After such payment, the levered free cash flow (LFCF) is the remaining money. It is an essential ...
Short-Term Debt Coverage = Cash from Operations ÷ Short-Term Debt Median by Sector SectorST Debt Coverage Ratio Consumer Discretionary 5.0x Consumer Staples 4.0x Energy 2.3x Financials NM Healthcare 0.2x Industrials 3.7x Information Technology 2.5x Materials 4.1x Telecom 4.5x Utilities 1.7x 6....
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'sInterest Coverage. Ben Graham requires th...
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