Cash flow Ratio:
· Cash inflow to sales= Cash Inflow/ sales
· Cash outflow to sales = Cash outflow /sales
· Operating cash flow to sales = Operating cash flow/sales
· Financing cash flow to sales = Operating cash flow/sales
· Investing cash flow to sales = Investing cash flow/sales
· Cash flow to net wroth = Cash flow/net wroth
· Cash flow to total assets = Cash flow/total assets
Cash flow to total debt = Cash flow/total debt
· This coverage ratio compares a company's operating cash flow to its total debt, which, for purposes of this ratio, is defined as the sum of short-term borrowings, the current portion of long-term debt and long-term debt. This ratio provides an indication of a company's ability to cover total debt with its yearly cash flow from operations. The higher the percentage ratio, the better the company's ability to carry its total debt.
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