Cash Flow Adequacy Ratio Calculator

Answers the Question

Can this firm cover its debt payments?

Calculator for Cash Flow Adequacy Ratio


What Is the Cash Flow Adequacy Ratio?

In general, the higher the ratio, the more likely a business will be able to cover its debts. Ratios below one indicate that the firm is unable to cover its debts, with increasingly small numbers indicating increasing levels of inability to pay.

Why Is it Important?

Formula(s) to Calculate Cash Flow Adequacy Ratio

Common Mistakes

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