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Suppose we calculate an interest coverage ratio of 29 for Colgate-Palmolive.We can conclude
Present Value
The current financial value of money to be obtained in the future or upcoming cash flow payments, quantified by a particular rate of return.
Cash Flows
The total amount of money being transferred in and out of a business, especially as affecting liquidity.
Investment
The expenditure of money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property.
Present Value Factors
Multipliers used to determine the present value of future cash flows by accounting for the time value of money.
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