Operating cash flow to current liabilities ratio = Cash flow from operations/Average current liabilities
This ratio recognizes that successful firms do not liquidate their current assets to pay their current liabilities, but instead use operating cash flow for that purpose.
Operating cash and average current liabilities are from Table 1.
Replace current ratio with: Current period ratio = current assets (including CPFA) / current liabilities (including CPLTD).
The "short-term cycle" only includes current assets and current liabilities that financed them and are repaid by them.
As a result, the Company anticipates that it will take until early in its fourth quarter, ending March 31, 1996, to reduce current liabilities
to historic levels and thereby satisfy the current ratio covenant.
While the government has sharply reduced its current liabilities
to trade creditors, new 2003 budget arrears of 0.