Cash Available For Debt Service (CADS)
A ratio that measures the amount of cash a company has on hand as compared to its debt service obligations. Debt service obligations include all current interest payments due, as well as all current principal repayments due. Investopedia Says:
Investors generally prefer a company to have a high CADS ratio; the higher the ratio, the more of a cash cushion the company has to fund its upcoming debt service payments. In other words, the higher a company's CADS ratio, the less likely the company will be to default on its debts, making owning its shares much safer for shareholders. Related Terms:
Coverage Ratio
Current Liabilities
Debt/Equity Ratio
EBITDA-To-Interest Coverage Ratio
Interest Coverage Ratio
Times Interest Earned - TIE |