Accounting Dictionary - Letter C

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Cash debt coverage ratio
shows how much of the company’s total liabilities can be covered (paid) with net cash from operating activities. In other words, this ratio is one of the measures of the company’s financial flexibility and stability. This ratio is calculated by dividing net cash provided by operating activities by the average total liabilities.
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