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Water: Economics

Policy & Guidance

Interim Economic Guidance for Water Quality Standards

Worksheet Y

Calculation of Beaver's Ratio

BR = CF ÷ TD

Where: BR = Beaver's Ratio
CF = Cash Flow
TD = Total Debt
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)

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