Cash flow statement ratios, Financial Management

Cash Flow Statement Ratios:

This ratio, which is defined as a percentage, compares a company's operating cash flow to its total sales or revenues, which provide investors an idea of the company's ability to convert sales into cash.

It could be worrisome to see a company's sales grow without a parallel growth in operating cash flow.  Negative and Positive changes in a company's terms of sale or the collection experience of its accounts receivable will defines in this indicator.


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Posted Date: 2/14/2013 12:45:30 AM | Location : United States

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