Free Cash Flow to Long Term Debt TTM

The Free Cash Flow to Long Term Debt ratio measures the sustainability of the debt structure based on available free cash flow and is an indicator of the company’s financial leverage. It is calculated as Free Cash Flow divided by Long Term Debt. This is measured on a TTM basis.

Stockopedia explains FCF / LT Debt

This ratio attempts to capture how easy it is for a firm to service its current long term debt obligations. Ultimately, a firm must settle interest payments with cash and if it is not able to comfortably meet these requirements with its free cash flow then there is unlikely to be much of an excess return remaining for equity investors.

Ideally, an investor wants the ratio to be as a high as possible, indicating that there is a lot of free cash flow for every £1 of debt on the balance sheet. That said, the ratio is enormously variable between industries and may be greater than 100% for companies with very little debt and a cash generative business down to low single digits % for companies with high debt levels.

Both can be acceptable depending on the situation and the industry though within a given industry, a higher rate would always be regarded as superior.

This is measured on a TTM basis.

Ranks: High to Low
Unit: %
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The 5 highest FCF / LT Debt Stocks in the Market

Ticker Name FCF / LT Debt StockRank
EPA:CAT31 Caisse Regionale De Credit Agricole Mutuel Toulouse 31 13042700 45
TPE:5007 San Shing Fastech 4816578.26 84
TYO:8358 Suruga Bank 3981120 71
NSQ:FHB First Hawaiian Inc 3931020 81
TPE:1325 Universal Inc 2595596.34 73
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