Cash flow to debt holders equation to compute the cash flow of a company. Cash flow is the measure of total amount of liquid cash that is moving in and out of the business. Cash flow to creditors formula is derived as I - E + B where I = Interest Paid, E = Ending Long-Term Debt, B = Beginning Long Term Debt. To find the cash flow, add the beginning and the ending long-term debt and then subtract with the interest paid to obtain the resultant value.

Where,

I = Interest Paid

E = Ending Long Term Debt

B = Beginning Long Term Debt

The financial cash flow to creditors formula to find the cash flow to creditors which is the measure of the quality of the company's income. The Cash flow is also referred as "statement of cash flows." Use this Cash flow to debt holders equation for solving various accounting problems related to cash flows.