The Traderszone Network

Published in TZ Latest News 13 June, 2017 by The TZ Newswire Staff

Debt Ratios: Cash Flow To Debt Ratio

This coverage ratio compares a company’s operating cash flow to its total debt. Operating cash flow is defined as the amount of cash generated by the company’s normal business operations. As an example, take a manufacturing company that reports a net income of $100 million, with an operating cash flow of $150 million.