Cash Flow Coverage Ratio: Formula and Example (2024)

Cash flow coverage ratio formula

Cash flow coverage ratio is one of the important ratios to measure the liquidity of the company.

It shows the ability of the company to cover its total debt in terms of the operating cash flow.

In this article, we will include what the cash flow coverage ratio is, its formula, how to calculate it, an example, and why it is important.

Price to cash flow ratio

Price to cash flow ratio formula

This article will reveal all information about price to cash flow ratio.

PCF is one of the best indicator which investors used to know the real value of a company.

So, let’s dive into the ocean of the cash flow world.