How do you solve for debt coverage ratio?

During 2009, Cypress Semiconductor Corporation reported cash provided by operations of $89,303,000, cash used in investing of $43,126,000, and cash used in financing of $7,368,000. In addition, cash spent for fixed assets during the period was $25,823,000. Average current liabilities were $251,522,000, and average total liabilities were $286,214,500. No dividends were paid.

Calculate these values:

(a)Current cash debt coverage ratio

(b)Cash debt coverage ratio

Thanks

Update:

What would the free cash flow be?

3 Answers

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  • Coco
    Lv 7
    6 years ago
    Best Answer

    Free cash flow = Cash provided by operations - Capital expenditures - Cash dividends

    $89,303,000 - 25,823,000 - 0 = $63,480,000

    Current cash debt coverage = Cash provided by operations / Average current liabilities

    $89,303,000 / 251,522,000 = 0.36

    Cash debt coverage = Cash provided by operations / Average total liabilities

    $89,303,000 / 286,214,500 = 0.31

  • 4 years ago

    Enroll more Physician Assistants. My primary care doctor functions more as a traffic cop, telling me which specialist to see than a doctor. His office sees me once a year, takes some blood and my blood pressure, he writes me a single prescription for my back pain and if I catch a cold during the year I see him to make sure it doesn't go to pneumonia, when its something more he sends me to a specialist. There is nothing there a Nurse or a Physicians assistant couldn't do with no loss of quality. The whole primary care deal was put up by the insurance companies who were convinced that people were taking advantage and seeing specialists when a gp would do. They were wrong, and all they did was add a layer of costs. In fact, they had to change the part where a woman has to see her primary to get a referral to her obgyn, because a woman knows when she needs to see one. With all the advances in medical science it only makes sense that well trained doctors don't want to diagnose more than a drippy nose.

  • robert
    Lv 4
    3 years ago

    1

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