RE:Operating Cash Not Sufficient To Cover Debt. The title of the this original post is misleading.
Operating cash flow to total debt does NOT represent insufficient cf to cover debt.
This guy is misleading others by saying that your “annual income is insufficient to cover the mortgage balance on your house”. The debt or mortgage in this case Osborn’s being amortized or spread among “x” numbers of years.
And in the case of Corus, that merely indicates it will fully pay off all the debt so in approximately 5 to 6 years based income historical cash flow. Liquidity test is based on annual Pricipal and Interest repayment. And corus has NO liquidity risk and they are putting extra to reduce principal amount owed to the banks or lenders.