What this calculator does
Cash flow coverage ratios works out whether operating cash flow covers current liabilities and total debt. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaOperating cash flow ratio = CFO / Current liabilities; Cash flow to debt ratio = CFO / Total debt
The inputs explained
| Field | What to enter |
|---|---|
| Operating cash flow ($) | A number, measured in your currency. Starts at 250000. |
| Current liabilities ($) | A number, measured in your currency. Starts at 300000. |
| Total debt ($) | A number, measured in your currency. Starts at 900000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with operating cash flow
Every other input is held at the calculator’s starting values while operating cash flow varies. Select any row to load that scenario into the calculator.
How the answer changes with operating cash flow
| Operating cash flow ($) | Operating cash flow ratio | Cash flow to debt ratio | Assessment |
|---|---|---|---|
| 125,000 | 0.42× | 13.9% | Operating cash flow falls short of current liabilities |
| 187,500 | 0.63× | 20.8% | Operating cash flow falls short of current liabilities |
| 250,000 | 0.83× | 27.8% | Operating cash flow falls short of current liabilities |
| 375,000 | 1.25× | 41.7% | Operating cash flow fully covers current liabilities |
| 500,000 | 1.67× | 55.6% | Operating cash flow fully covers current liabilities |
| 750,000 | 2.50× | 83.3% | Operating cash flow fully covers current liabilities |