What Is Cash Management? Cash management is the process of collecting and managing cash flows. Cash management can be important for both individuals and companies. In business, it is a key component of a company’s financial stability. For individuals, cash is also essential for financial stability while also usually considered as part of a total wealth … Continue reading Cash Management
Equity or Owner Equity or Shareholder Equity refers to the amount of money that the owner/shareholders have invested into the business. It represents the amount of assets which belong to the owner/shareholders. It is a part of the accounting equation that represents the Assets, Liabilities, and Equities. Owner Equity can be increased after the business … Continue reading Equity Vs Capital
What is Cash Flow to Total Assets Ratio? Cash flow to total assets ratio is the tool to measure the amount of cash flow a company made compare to the total assets. It is not related to the profit or loss that company makes. It is purely related to cash inflow to the company. Cash … Continue reading Cash Flow to Total Assets Ratio
What is the Cash Flow to Sales Ratio? The cash flow to sales ratio reveals the ability of a business to generate cash flow in proportion to its sales volume. It is calculated by dividing operating cash flows by net sales. The operating cash flows information can be extracted from a firm’s statement of cash … Continue reading Cash Flow to Sales Ratio
What is the Cash Flow to Debt Ratio? The cash flow to debt ratio reveals the ability of a business to support its debt obligations from its operating cash flows. This is a type of debt coverage ratio. A higher percentage indicates that a business is more likely to be able to support its existing … Continue reading Cash Flow to Debt Ratio
Naturally, a company must be able to pay off its obligations with the operating cash flows it has. This ability is measured with the help of a liquidity ratio that’s known as cash flow coverage. More specifically, the cash flow coverage ratio shows if a company is able to pay off its current expenses or … Continue reading Cash Flow Coverage Ratio
What is the Cash Flow Adequacy Ratio? The cash flow adequacy ratio is used to determine if the cash flow generated by a company is sufficient to pay for its ongoing expenses—for example, reductions in long-term debt, acquisition of fixed assets or paying dividends to shareholders. Cash flow adequacy is a liquidity ratio that measures … Continue reading Cash Flow Adequacy Ratio
Many people probably know who the CEO is or who the CFO is, but there are a number of other positions in the corporate hierarchy, the abbreviation of which may be incomprehensible to most people. In this article, we will look at the key positions used in business area: CA CAE CAIO CAO CBDO CBO … Continue reading Who are the CEO, CFO, CCO, CIO, CMO, CRO, etc.?
What is Cash Earnings per Share (Cash EPS)? Cash earnings per share (cash EPS) is the operating cash flow generated by a company divided by the number of shares outstanding. Cash earnings per share (Cash EPS) is different from traditional earnings per share (EPS), which takes the company’s net income and divides it by the … Continue reading Cash Earnings Per Share (Cash EPS)
What Is the Cash Conversion Cycle (CCC)? The cash conversion cycle (CCC) is a metric that expresses the time (measured in days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Also called the Net Operating Cycle or simply Cash Cycle, CCC attempts to measure … Continue reading Cash Conversion Cycle (CCC)