Accounting / July 19, 2018 / Pearl Bailey
Debit to cash flow ratio - more simply known as debt ratio - is a comparison of a company's operating cash flow to it's overall debt. The purpose of this ratio is to estimate a company's ability to cover total debt with its annual cash flow from operations.
A tangible, long-term asset used for the business and not expected to be sold or otherwise converted into cash during the current or upcoming fiscal year is called a fixed asset. Fixed assets are items like furniture, computer equipment, equipment, and real estate.
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