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