Cash flow to debt ratio

Cash flow to debt ratio


Cash flow to debt ratio shows how much the company earns from its’ core activities per one dollar of debts (total liabilities). Data to calculate this ratio is collected from balance sheet and cash flow statement.

Norms and limitations

The higher value of the ratio indicates a better ability of the company to cover its’ liabilities.

It is recommended to compare this ratio to those of the companies, working within the same industry.

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