Cash Maturity Coverage = (cash flow from operations – dividends) / current portion of long term maturities.
Cash maturity coverage ratio definition and explanation:
The cash maturity coverage ratio indicates the ability to repay long term maturities as they mature.
The cash maturity coverage ratio indicates whether long term debt maturities are in time with operating cash flow.
The cash maturity coverage ratio is included in the the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio.