Importance The article studies ratios assessed through cash flows, i.e. cash flow ratio and interest coverage ratio, and their application to capture a more reliable and comprehensive view of the entity's solvency and financial sustainability. Objectives The research examines cash flows of the entity as an additional source of information to manage corporate solvency. Methods The research is based on financial statements of airport operators for the period spanning from 2011 until 2014. I also compare the cash flow coverage ratio and cash interest coverage ratio with traditional ratios, such as current ratio and interest coverage ratio respectively. Conducting a correlation analysis, I trace the nexus between the above pairs of ratios. Results As the research proves, the current ratio and cash flow coverage ratio do not correlate strongly. Users should better use respective cash flow ratios to get more full and accurate information. Relying on their strong correlation, the cash interest coverage ratio can be applied to a greater extent to analyze the financial standing of entities. Conclusions and Relevance As I conclude, if supplemented with the cash interest coverage ratio, the interest coverage ratio can not only provide a broader and deeper view of the entity's financial standing, but also be used to specify the credit rating of the entity. It will be more adequate and accurate to assign a credit rating on the basis of the cash interest coverage ratio since it allows for cash flow.
Sorokina E.M. [Theoretical aspect of analysis of organization's financial solvency]. Izvestiya Irkutskoi gosudarstvennoi ekonomicheskoi akademii = Izvestiya of Irkutsk State Economics Academy, 2012, no. 2, pp. 80–86. (In Russ.)
Laskina L.Yu. [Capacity to pay as a measure of value creation]. Upravlencheskii uchet = Management Accounting, 2013, no. 10, pp. 47–54. (In Russ.)
Kemenov A.A. [Estimation of a management efficiency monetary streams of the building organization]. Finansovaya zhizn' = Financial Life, 2012, no. 2, pp. 47–53. (In Russ.)
Sverdlina E.B. [Monitoring of organization's financial standing]. Vestnik Omskogo universiteta. Ser.: Ekonomika = Herald of Omsk University. Series Economics, 2010, no. 3, pp. 154–159. (In Russ.)
Tsyrkunova T.A. [Application of normative levels and trend analysis to generate estimates of financial ratios]. ETAP: Ekonomicheskaya Teoriya, Analiz, Praktika = ETAP: Economic Theory, Analysis, Practice, 2011, no. 2, pp. 61–68. (In Russ.)
Laskina L.Yu., Vlasova M.S. [Comparative estimate of enterprise liquidity using traditional ratios and cash flow ratios]. Nauchnyi zhurnal NIU ITMO. Ser.: Ekonomika i ekologicheskii menedzhment, 2013, no. 2. (In Russ.) URL: Link
Vitsko E.A. [Analysis of Essence and Prospects of Forms of Settlements in Domestic and Foreign Economy between Business Entities]. Nauchnyi zhurnal NIU ITMO. Ser.: Ekonomika i ekologicheskii menedzhment, 2014, no. 3. (In Russ.) URL: Link
Cheremushkin S. [Assessing the financial condition of the company based on cash ratios]. Finansovyi menedzhment = Financial Management, 2007, no. 5, pp. 11–22. (In Russ.)
Giacomino D.E., Mielke D.E. Cash Flows: Another Approach to Ratio Analysis. Journal of Accountancy, 1993, March, vol. 175, no. 3, pp. 55–58. URL: Link
Kirkham R. Liquidity Analysis Using Cash Flow Ratios and Traditional Ratios: The Telecommunications Sector in Australia. Journal of New Business Ideas & Trends, 2012, vol. 10, iss. 1, pp. 1–13. URL: Link
Orlova T.S., Yaroshevich N.Yu. [Trends in the development of infrastructure sectors: The global airport industry case]. Upravlenie= Management, 2013, no. 1, pp. 34–43. (In Russ.)
Varaksa A.M. [Comprehensive Approach to National Economy]. Nauchnye problemy transporta Sibiri i Dal'nego Vostoka = Scientific Problems of Transportation in Siberia and the Far East, 2015, no. 1, pp. 6–9. (In Russ.)
Stroganova V.I., Trunina V.F. [Areas of airport infrastructure development]. Molodoi uchenyi = Young Scientist, 2011, vol. 1, no. 12, pp. 188–190. (In Russ.)
Eremin V.L., Kramarenko A.V. [Concessional mechanism as an efficient instrument of airports' infrastructure upgrade]. ETAP: Ekonomicheskaya Teoriya, Analiz, Praktika = ETAP: Economic Theory, Analysis, Practice, 2010, no. 4, pp. 106–116. (In Russ.)
Kramorenko M.I., Varaksa A.M. [The role of foreign investment in economic security of the federal districts of the Russian Federation]. Sibirskaya finansovaya shkola = Siberian Financial School, 2015, no. 6, pp. 71–74. (In Russ.)
Damodaran A. Investitsionnaya otsenka: instrumenty i metody otsenki lyubykh aktivov [Investment Valuation: Tools and Techniques for Determining the Value of Any Asset]. Moscow, Al'pina Biznes Buks Publ., 2005, 1341 p.
Putikhin Yu.E., Vlasova M.S. [To the questions of the efficiency's analysis of investment projects. Assessment of negative cash flow]. Uchenye zapiski Sankt-Peterburgskogo universiteta upravleniya i ekonomiki = Scientific Notes of Saint-Petersburg University of Management and Economics, 2014, no. 1, pp. 14–21. (In Russ.)
Pogostinskaya N.N., Pogostinskii Yu.A., Vlasova M.S. [The factor analysis of dynamic standard models in the system of information support to management]. Izvestiya Mezhdunarodnoi akademii agrarnogo obrazovaniya = Journal of International Academy of Agrarian Education, 2012, vol. 2, no. 14, pp. 236–241. (In Russ.)
Laskina L.Yu., Smirnova O.Yu. [National credit rating agency as an alternative to the international rating agencies]. Uchenye zapiski Mezhdunarodnogo bankovskogo instituta = Proceedings of International Banking Institute, 2016, no. 17, pp. 56–63. (In Russ.)
Vlasova M.S., Laskina L.I., Silakova L.V. Estimating the Impact of Taxation on the Company's Strategic Sustainability. EACES Workshop: Financial Development in Transition and Post-Transition Countries. Serbia, EACES, 2015, pp. 131–139.
