Financial covenants in the TELUS International facility include two quarter-end ratio tests: a net debt to operating cash flow ratio
test, which must not exceed 3.25x, and an operating cash flow to debt service ratio must not be less than 1.5x.
The cash flow ratios are: Operating cash flow ratio
(OCF/CL); Cash ratio (Cash/CL); Cash debt Coverage ratio (OCF- Div/total debt); and Cash interest coverage (OCF+ int.
Operating Cash Flow Ratio: cash flow from operations / current liabilities (Figelwicz and Zeller, 1991; Mills, et al., 1998; Schmidgall, et al., 1993).
The trend of the operating cash flow ratio is stable.
This ratio is a more intense test than operating cash flow ratio of the ability of the company to pay their debts.
Operating Cash Flow Ratios
Measure a Retail Firm's "ability to pay", Journal of Applied Business Research, vol.
Operating cash flow ratios
vary radically, depending on the industry.