The operating cash flow ratio can gauge a company's liquidity in the short term. Using cash flow as opposed to income is sometimes a better indication of liquidity simply because, as we know, cash is how bills are normally paid off.
Investment dictionary. Academic. 2012.
Price/cash flow ratio — The price/cash flow ratio (also called price to cash flow ratio or P/CF), is a ratio used to compare a company s market value to its cash flow. It is calculated by dividing the company s market cap by the company s operating cash flow in the most … Wikipedia
Free cash flow — In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.There are two… … Wikipedia
Debt-Adjusted Cash Flow - DACF — A financial ratio commonly used in the analysis of oil companies, representing the after tax operating cash flow, excluding financial expenses after taxes. Debt adjusted cash flow (DACF) is calculated as follows: DACF = cash flow from operations… … Investment dictionary
Operating margin — In business, operating margin, operating income margin, operating profit margin or return on sales (ROS) is the ratio of operating income (operating profit in the UK) divided by net sales, usually presented in percent. Net profit measures the… … Wikipedia
Financial ratio — Corporate finance … Wikipedia
Debt service coverage ratio — The debt service coverage ratio (DSCR), also known as debt coverage ratio, is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity s (person or… … Wikipedia
Debt-Service Coverage Ratio - DSCR — In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments. In government finance, it is the amount of export earnings needed to meet annual interest and… … Investment dictionary
Demand flow technology — (DFT) is a strategy to define and deploy business processes in a flow, driven in response to customer demand. DFT is based on a set of applied mathematical tools that are used to connect processes in a flow and link it to daily changes in demand … Wikipedia
Accounting liquidity — (liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities.Calculating liquidityFor a corporation with a published balance sheet… … Wikipedia
Liquidity Ratios — A class of financial metrics that is used to determine a company s ability to pay off its short terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short term… … Investment dictionary
