Operating cash flow interest coverage ratio
factor.formula
in:
- :
Net cash flow from operating activities in the last 12 months (rolling year) (Operating Cash Flow, Trailing Twelve Months). This value reflects the net amount of cash inflow minus cash outflow generated by the company's core business activities in the past year, and is a key indicator for evaluating the company's profit quality and cash generation ability.
- :
The interest expense (Trailing Twelve Months) of the last 12 months (rolling year) is usually calculated as the net amount of interest expense minus interest income in financial expenses. It reflects the total interest expense borne by the enterprise due to borrowing in a certain period of time and is an important basis for evaluating the financial burden of the enterprise.
factor.explanation
The operating cash flow interest coverage ratio reflects the ability of the net cash flow generated by the company's operating activities to cover interest expenses. The higher the value of this indicator, the stronger the company's ability to repay interest based on the cash flow generated by its own operating activities, the lower the financial risk, and the better the financial flexibility. This indicator is an important indicator for measuring the company's short-term debt repayment ability, especially the interest repayment ability, and is also an important reference for assessing the company's financial health and operational stability. Generally, this indicator is considered to be safer when it is greater than 1, and the specific value needs to be analyzed in combination with the characteristics of the industry and the company's own situation.