Learn how to calculate and interpret the cash flow-to-debt ratio to assess a company's ability to manage debt effectively. Includes formulas and real-world examples.

Every corporation needs reliable access to capital to stay in business. Positive cash flow allows businesses to cover expenses, plan growth initiatives and reward long-term shareholders. Cash flow ...

Savvy investors look at a company’s financial health before buying its stock. Some investors monitor a company’s free cash flow and review its cash flow statements to gauge how well it manages its ...

Cash flow is the heartbeat of any business. Without it, even profitable companies can quickly run into trouble. Accounts receivable (AR), the money owed to a business by customers, is a critical ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Price to free cash flow ratio compares a company's market cap to its free cash produced. To calculate P/FCF, divide market capitalization by free cash flow from cash flow statement. Low P/FCF suggests ...

That’s the attitude of some investment professionals toward stock-selection methods that differ from their own. If astronomers had a narrow view like that, they might spot Jupiter but miss the ...