![]() For Entertainment companies, this ratio is within a sensible range as there’s enough of a cash buffer without holding too much capital in low return investments. With current liabilities at ₹95m, it seems that the business has been able to meet these commitments with a current assets level of ₹125m, leading to a 1.32x current account ratio. Does RADAAN’s liquid assets cover its short-term commitments? In RADAAN’s case, it is able to generate 0.34x cash from its debt capital. This ratio can also be a sign of operational efficiency as an alternative to return on assets. Additionally, RADAAN has generated ₹25m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 34%, meaning that RADAAN’s debt is appropriately covered by operating cash. ![]() With this reduction in debt, RADAAN currently has ₹1.1m remaining in cash and short-term investments for investing into the business. Over the past year, RADAAN has reduced its debt from ₹86m to ₹73m, which includes long-term debt. How does RADAAN’s operating cash flow stack up against its debt?
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