Business, Legal & Accounting Glossary
A cash-basis ratio that accounts for the changing liabilities and cash flows that a company experiences during the course of a time period. Current cash debt coverage ratio is a measure of liquidity. Unlike the acid-test ratio or current ratio, the current cash debt coverage ratio does not look at year-end balances. Instead, the ratio is calculated by taking the net cash provided by operating activities and dividing it by the average current liabilities.
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This glossary post was last updated: 20th November, 2021 | 0 Views.