Formula
to calculate cash dividend coverage ratio:
Cash
Dividend Coverage = (cash flow from operations) /
dividends.
Cash
dividend coverage ratio definition and explanation:
The cash
dividend coverage ratio reflects the company's ability
to meet dividends from operating cash flow.
A cash
dividend coverage ratio
of less than 1:1 (100 %) indicates that dividends are
draining more cash from the business than it is
generating.
The cash dividend coverage ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The cash dividend coverage ratio is listed in our
dividend ratios.
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explanations and charts):
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calculate, define and explain.
The cash dividend coverage
ratio may be included in our
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