The current cash debt coverage ratio is often used to assess
A) financial flexibility.
B) solvency.
C) liquidity.
D) profitability.

Question

Quizplus · Accepted Answer

The current cash debt coverage ratio is a liquidity ratio that measures a company's ability to pay off its current liabilities with its cash flow from operations. This provides an indication of the company's short-term financial health and its ability to meet its short-term obligations.

The Current Cash Debt Coverage Ratio Is Often Used to Assess