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)
What Is the Capital Intensity Ratio? The capital intensity ratio (CIR) is a measurement of the financial efficiency of a company. By looking at the number of assets or capital a company needs to generate a dollar of revenue, it’s possible to learn about its business model’s overall health and stability. The capital intensity ratio … Continue reading Capital Intensity Ratio
What Is Capital Gains Yield (CGY)? A capital gains yield is the rise in the price of a security, like common stock, over a given period of time. It does not include any dividends and the yield is based only on stock price appreciation (or depreciation). The capitals gain yield can provide useful information to … Continue reading Capital Gains Yield
What is Compound Annual Growth Rate (CAGR)? Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some element of the business, for example … Continue reading Compound Annual Growth Rate (CAGR)