CASH DEBT COVERAGE RATIO Definition

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CASH DEBT COVERAGE RATIO is the ratio of net cash provided by operating activities to average total liabilities, called the cash debt coverage ratio, is a cash-basis measure of solvency. This ratio indicates a company's ability to repay its liabilities from cash generated from operating activities without having to liquidate the assets used in operations.

Learn new Accounting Terms

OWN WORK CAPITALIZED represents the value of work performed for own purposes and capitalized as part of fixed assets.

WORK IN PROCESS is parts and subassemblies in the process of becoming completed finished goods.

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