About

The cash flow to debt ratio is a coverage ratio used to measure whether a company is able to pay back its debt. It is similar to the interest coverage ratio, which is measures the capabilities of the company to covered its short term debt and long term debt.

It compares the company's cash flow from operations to its total debt. When the cash flow to debt ratio is higher then indicates the capability of the company is better to pay back its debt. The cash flow to debt ratio represents the overall growth and health of the company.

The formula for calculating total debt, cash flow to debt ratio, and debt to cash flow ratio are as follows:

First calculate, Total Debt = Short Term Debt + Long Term Debt

Cash Flow to Debt Ratio = Operating Cash Flow / Total Debt

Debt to Cash Flow Ratio = Total Debt / Operating Cash Flow

What can you do with Cash Flow to Debt Ratio Calculator?

• It helps to calculate the cash flow to debt ratio and debt to cash flow ratio of the company and helps to know the financial health of the company.
• Users can see the accurate total debt, cash flow to debt ratio, and debt to cash flow ratio. And also can see the final balance in words.
• This calculator helps to share your calculations by URL.