Cash Flow Coverage Ratio Calculator is a finance tool to calculate the ratio of operating cash flow to total debt of the company. Generally, it is a financial health indicator to illustrate the company’s ability to cover its financial obligation by its earnings. The value of this ratio is one or greater than one, then the company has the strong ability to meet its all financial obligations. The company may face the bankruptcy in next two years for lesser than one ratio values.
Formula Cash Flow Coverage Ratio = Operating Cash Flow/Total Debt