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Cash Flow Coverage Ratio

A company’s cash flow coverage ratio (CFCR) clarifies its ability to pay its debts based on cash flow from operations.

What is the Cash Flow Coverage Ratio (CFCR)?

A company’s cash flow coverage ratio (CFCR) clarifies its ability to pay its debts based on cash flow from operations. Complete this formula to find your business’s CFCR:

CFCR = (cash flow from operations/total debt) x 100

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Cash Flow Coverage Ratio

What is the Cash Flow Coverage Ratio (CFCR)?

A company’s cash flow coverage ratio (CFCR) clarifies its ability to pay its debts based on cash flow from operations. Complete this formula to find your business’s CFCR:

CFCR = (cash flow from operations/total debt) x 100

Related terms

AP Automation
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This process involves comparing and matching incoming payments with corresponding invoices or accounts receivable entries in the company's financial records.
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This strategy focuses on maximizing the inflow of cash while efficiently managing outflows to maintain a healthy liquidity position.
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The price-to-cash-flow (P/CF) ratio uses cash flow to measure a business’s worth.
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A sustainable growth rate (SGR) is the highest amount of growth a business can have without accumulating further debt.
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Weeks of liquidity on hand is a measurement of a business’s available liquidity.
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30-Day and 13-Week Operating Cash Burn
30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit.