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16 kwi 2023 · The current cash debt coverage ratio is a liquidity ratio that measures the efficiency of an entity’s cash management. It ratio shows a company’s relation to the operating cash flow received during an accounting period with the current liabilities it needs to clear.
Current Cash Debt Coverage Ratio = Net Cash From Operating Activities / Average Current Liabilities. Net Cash From Activities: is the operating cash flow from cash flow statement. Average Current Liabilities: is the average amount of current liability on balance sheet.
The Cash Debt Coverage Ratio (CDCR) is a financial ratio that indicates a company's ability to cover its short-term debt obligations with its available cash flow. To calculate the ratio, you need to divide the company's operating cash flow by its total debt payments.
29 wrz 2020 · A coverage ratio, broadly, is a metric intended to measure a company's ability to service its debt and meet its financial obligations, such as interest payments or dividends. The higher the...
7 sty 2024 · The cash flow to debt ratio (CFDR), also called the debt service coverage ratio (DSCR), is an economic indicator that shows a corporation's ability to produce enough cash flow to pay its debt commitments.
29 cze 2024 · The debt-service coverage ratio (DSCR) is a measure of the cash flow available to pay current debt obligations. The DSCR measures a business’s cash flow vs. its debt obligations....
Formula. Debt service coverage ratio = Operating Income / Total debt service. Example. For example, a company’s financial statement showed the following figures: Operating profits: $500,000.
