Cash Flow to debt Ratio Calculator Online

Cash Flow to Debt Ratio Calculator

Cash Flow To debt Ratio Calculator

Cash flow to debt ratio is a coverage ratio used to measure how capable a company covers its total debt. Similar to the interest coverage ratio indicates how healthy is a company. Cash flow to debt ratio eqal to operating cash flow divided to total debt.

The Formula as

Cash flow to debt ratio = Operating cash flow / Total debt

1.)Total debt Calculator

Total debt is equal to short term debt added to long debt

The formula as

Total debt = short term debt + Long debt

Let us consider

The short-term debt will always be in the current liabilities section of the balance sheet,

the long-term debt will be in the non-current liabilities section.

1.)Total debt to cash flow ratio formula

The total debt to cash flow ratio Equal to total debt divided cash flow from operations.

Formula as,

Total debt to cash flow ratio  =Total debt /Cash flow from

Cash flow to debt ratio example

On this occasion, we are going to review Boeing (NYSE: BA). Considering its 4Q 2018 quarter report, we have:

Example For

Operating cash flow = 2,947 million USD

Total debt = 13.8 billion USD

Cash flow to debt ratio = 21.36 %

Debt to cash flow = 4.68

Then, by taking into account the next quarter report (1Q 2019),

Operating cash flow = 2,788 million USD

Total debt = 14.7 billion USD

Cash flow to debt ratio = 18.97 %

Debt to cash flow = 5.27

 

 

 

 

 

 

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