46
1991,
p.65).
The
following
formula
can
be
used
to
calculate
cash
dividend
coverage ratio.
Cash Dividend Coverage
Cash Flows from operating activities
Dividends payment
Table 2.21: Formula of Cash Dividends Coverage
From: Developing Ratios for Effective Cash Flow Statement Analysis, 1991.
f)
Cash Current Debt Coverage Ratio
According
to
Mills
and
Yamamura
(1998,
p.58),
the
cash
current
debt
ratio
represents
the
company’s
ability to
accomplish
its
obligations
of
paying its current debt.
Cash Current Debt Coverage Ratio
Cash flows from operating activities – cash dividends
Current Debt
Table 2.22: Formula for Calculating Cash Current Debt Coverage Ratio
From: The Power of Cash Flow Ratios, 1998
g)
Cash Burn Ratio
According
to White et al (2003, p.129),
the cash burn ratio
measures
the
amount of cash being used by the company over a given a period of time,
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