Cash flows from operating activities divided by repayments of long-term borrowings + assets acquired + dividends paid)is the formula for:

Question

Quizplus · Accepted Answer

The formula given is for calculating the Cash flow adequacy ratio, which shows the company's ability to generate cash flow from its operations to meet its financial obligations such as repaying long-term borrowings, acquiring assets, and paying dividends.

Cash Flows from Operating Activities Divided by Repayments of Long-Term