Cash Flow to Debt Ratio
Cash Flow to Debt Ratio = Operating Cash Flow/Total Debt
The cash flow to debt ratio tells investors how much cash flow the company generated from its regular operating activities compared to the total debt it has. For instance if the ratio is 0.25, then the operating cash flow was one fourth of the total debt the company has on its books. This debt includes interest payments, principal payments and even lease payments to cover off balance sheet financing.
- Degree of Operating Leverage Ratio
- Degree of Combined Leverage Ratio
- Introduction to Cash Flow Ratios
- Free Cash Flow to Operating Cash Flow
- Operating Cash Flow to Sales Ratio
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