Points clés à retenir
- The cash flow-to-debt ratio is a comparison of a firm’s operating cash flow to its total debt.
- Vous pouvez le calculer en divisant le flux de trésorerie d’exploitation annuel sur le tableau des flux de trésorerie de l’entreprise par la dette actuelle et à long terme sur la feuille Gesundmd.
- The ratio reflects a company’s ability to repay its debts and within what time frame. Un rapport optimal est de 1 ou plus.
- The ratio should be viewed in the context of comparable firms and alongside other financial statements.
Definitions and Examples of the Cash Flow-to-Debt Ratio
The cash flow-to-debt ratio measures a company’s cash flow from operations in relation to its total debt. Il vous indique combien d’argent une entreprise a gagné au cours d’une période comptable en exploitant l’entreprise plutôt qu’en recevant de l’argent provenant de prêts ou d’investissements.
Si vous envisagez d’acheter des actions d’une entreprise, mais que vous craignez qu’elle s’endette plus qu’elle ne peut en supporter, vous pouvez calculer le ratio flux de trésorerie/dette. That would allow you to see how the company’s operating cash flow measures up to its overall liabilities.
How Do You Calculate the Cash Flow-to-Debt Ratio?
To calculate a company’s cash flow-to-debt ratio, first figure out its annual operating cash flow. This is one of the three cash flows listed on the cash flow statement. Operating cash flow is calculated as earnings before interest and taxes (EBIT), plus depreciation, minus taxes. The EBIT itself amounts to the net annual income, plus interest expenses, plus income tax expenses.
Next, add up current and long-term liabilities (shown on the firm’s balance sheet) to figure the total debt.
Last, divide the operating cash flow by the total debt to obtain the cash flow-to-debt ratio.
Note
Some firms use free cash flow instead of operating cash flow. Free cash flow amounts to operating cash flow, minus net working capital, minus net capital spending.
Comment fonctionne le ratio flux de trésorerie/dette
Le ratio vous dit deux choses sur une entreprise :
- Sa capacité à rembourser ses dettes : The higher the ratio, the more able a firm is to pay off debts.
- Le délai nécessaire pour rembourser ses dettes : Dividing 1 by the cash flow-to-debt ratio tells you how many years it will take to pay off its total debt.
Un ratio de 1 ou plus est le meilleur, tandis qu’un ratio inférieur à 1 montre qu’une entreprise ne génère pas suffisamment de flux de trésorerie (et ne dispose pas de liquidités) pour faire face à ses dettes. This is key, as a firm that may not be able to pay its debts is headed for trouble and may not be a stock you want to own.
For instance, suppose that ABC Corp. has an operating cash flow of $5 billion but has $20 billion in total debt. It has a cash flow-to-debt ratio of 0.25, which means that it would take a whopping four years to pay off its debt (1 divided by 0.25).
XYZ Corp., in contrast, has an operating cash flow of $20 billion and is only $16 billion in debt. Its cash flow-to-debt ratio is a more solid 1.25. Elle peut rembourser sa dette en moins de 10 mois. It may even be able to pay down its debt sooner through larger payments, or it could take on more debt and expand.
Note
During tough economic times, cash flow can suffer, which prevents debt repayment or a decrease in total debt. The larger the cash flow-to-debt ratio, the better a firm can weather rough patches.
Limites du ratio flux de trésorerie/dette
The ratio has two key constraints: diverse methods of calculation and lack of context for the figures.
Diverses méthodes de calcul
The variables that are used to figure out the ratio are not set in stone. If an analyst uses free cash flow instead of operating cash flow, for instance, the calculation excludes working capital and capital spending. Ceux-ci peuvent être importants pour une entreprise en croissance. Likewise, if only long-term debt is factored into the debt calculation, the ratio may hide a firm’s high current debt. Take care to look not only at the ratio but also how it was calculated.
Manque de contexte pour les chiffres
The equation doesn’t tell you how the ratio has changed over time. As a result, it fails to show whether a firm’s ability to repay its debt is getting better or worse. Nor does the equation tell you whether the ratio is competitive with those of others in the same industry. For instance, some industries may have a lower cash-flow-to-debt ratio than others. If you rely too much on the ratio, you may write off potentially sound investments.
Vous pourriez investir dans une entreprise dont le ratio est bien inférieur à celui d’autres entreprises du même secteur, même s’il est supérieur à 1. C’est pourquoi il est important de comparer des pommes avec des pommes. Look at the cash flow-to-debt ratios of companies in the same industry. Take a holistic approach when evaluating a firm’s financial statements.
