It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other ... Finally, the operating cash flow ratio compares a ...

This formula reflects a company's ability to use its cash flow from operations to pay off its debt. A higher cash flow coverage ratio is more promising and indicates a company doesn't have to ...

A gearing ratio measures a company's level of debt. Here are some guidelines for a good, bad, or normal gearing ratio.

If ratios are increasing--more debt in relation to equity--the company is being financed by creditors rather than by internal positive cash flow which may be a dangerous trend. When examining the ...

This straightforward formula provides a quick ... Implication: Cash flow metrics, such as Free Cash Flow to Debt, should be considered alongside this ratio. The applicability of the EBITDA ...

or divide its share price by its free cash flow per share. A lower ratio indicates a company may be undervalued, while a higher ratio may signal overvaluation. The debt-to-equity, or D/E ...

"A good debt-to-equity ratio depends on the type of business," Graham says. Does the company generate consistent operating cash flow? Is the company cyclical or non-cyclical in structure?