Cash Flow Coverage Ratio Calculator

About this calculator

This calculator computes the cash flow coverage ratio as operating cash flow ÷ total debt. A ratio of 0.25 means the company generates enough operating cash in one year to pay off a quarter of its total debt outright — the higher the ratio, the more comfortably a company could retire its obligations from ongoing operations alone, without refinancing or selling assets.

Lenders and bond analysts use it as a core solvency check when underwriting a loan or rating debt, because it looks at actual cash generated rather than accounting earnings, which can be positive even while a company is cash-strapped. A ratio trending downward over several quarters is an early warning sign credit teams flag well before a company misses a payment.