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Cash Flow Coverage Ratio

Definition of this KPI:
The Cash Flow Coverage Ratio assesses the company’s ability to meet its debt obligations using the cash generated from operations. It is a key indicator of financial stability and risk management.


  • This KPI can be calculated as: Operating Cash Flow / Total debt
  • The KPI will be measured as: number (amount of units, rating, etc)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Maintain a high cash flow coverage ratio to reduce the risk of default and ensure the company can comfortably meet its debt obligations, contributing to overall financial stability.
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