Cash Flow to Creditors Calculator
Cash Flow to Creditors Calculator
Component | Description |
---|---|
Interest Paid | The total amount of interest paid to creditors during the period. |
Net New Borrowing | The net amount of new debt issued minus the debt repaid during the period. |
Cash Flow to Creditors | The net cash flow paid to creditors, calculated by subtracting net new borrowing from interest paid. |
Formula | Cash Flow to Creditors = Interest Paid – Net New Borrowing |
Purpose | Used to measure the net cash payments made to creditors, indicating the company’s debt management. |