Posts Tagged ‘short-term debt coverage ratio’

Cash Flow Coverage Ratios

There are several cash flow coverage ratios. Let’s look at two that impact all sizes of companies, including small ones.

Some Preliminaries

The reason I will only discuss two of these ratios is that some of the others rarely impact small companies that are privately and/or closely owned. In both of the ratios we will look at OCF stands for operating cash flow. As a reminder, OCF is calculated as:

Net Income adjusted for non-cash charges and changes in current assets and liabilities. Again for this calculation net income is exclusive of Read the rest of this entry »


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