Generic Company's cash flow to debt ratio is 1.83. This means that Generic Company can satisfy its interest obligations from operating earnings 1.83 times.

Name: Generic Company's cash flow to debt ratio is 1.83. This means that Generic Company can satisfy its interest obligations from operating earnings 1.83 times.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

The cash flow to debt ratio of 1.83 indicates the company can cover its total debt 1.83 times with its operating cash flow, not just its interest obligations.

Generic Company's Cash Flow to Debt Ratio Is 1