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Water: Economics

Policy & Guidance: Worksheet K

Interim Economic Guidance for Water Quality Standards

Calculation of Beaver's Ratio

BR = CF ÷ TD

Where: BR = Beaver's Ratio

CF = Cash Flow

TD = Total Debt

Three Most Recently Completed Fiscal Years




19___


19 ___


19 ___



Cash Flow:






Net Income After Taxes $________
$________
$________
(1)
Depreciation $________
$________
$________
(2)
CF [Calculate: (1) + (2)] $________
$________
$________
(3)
Total Debt:






Current Debt $________
$________
$________
(4)
Long-Term Debt $________
$________
$________
(5)
Total Debt $________
$________
$________
(6)
Beaver's Ratio:






BR [(3) /(6)]





(7)

Considerations:

Is the most recent year typical of the three years? __ Yes __ No

(If not, you might want to use an earlier year or years for the analysis)

Is the Beaver's Ratio for this discharger greater than 0.2? __ Yes __ No

Is the Beaver's Ratio for this discharger less than 0.15? __ Yes __ No

Is the Beaver's Ratio for this discharger between 0.2 and 0.15? __ Yes __ No

How does this ratio compare with the Beaver's Ratio for other firms in the same business?

 




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