The Cash Flow Adequacy calculator compoutes the Cash Flow Adequacy index which is used to help analyze a company. Bankers and other creditors are especially concerned with a company's ability to meet its principal and interest obligations. It measures the cash that a company has available to meet future debt obligations.
INSTRUCTIONS: Choose your preferred currency units and enter the following:
Cash Flow Adequacy: The calculator returns the unit-less index.
The formula for Cash Flow Addequatcy is as follows:
CFA = `("Cash Flow from Operations" - "Capital Expenditures")/("Average Amount of Debt Maturing over the next five years")` .