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why is the current cash debt coverage ratio useful? 1. It indicates whether a company can support its debt service with cash flow from operations

why is the current cash debt coverage ratio useful?

1. It indicates whether a company can support its debt service with cash flow from operations

2. It measures how efficiently a company uses debt.

3. It demonstrates the extent to which long-term assets are financed with long-term debt

4. It indicates whether additional debt is needed by the business

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