Question

Assume that you want to use some financial ratios from analysis, what are some of the...

Assume that you want to use some financial ratios from analysis, what are some of the financial ratios that comes from the statement of cash flows?

Homework Answers

Answer #1

Cash Flow Ratios Summary:

Operating Cash Flow Ratio=Cash Flow from Operations (CFO) /Sales

Asset Efficiency Ratio =CFO / Total Assets

Current Liability Coverage Ratio =CFO / Current Liabilities or (CFO – Dividends Paid) / Current Liabilities

Long Term Debt Coverage Ratio= CFO / Long Term Debt

Interest Coverage Ratio =(CFO + Interest Paid + Taxes Paid) / Interest Paid

Cash Generating Power Ratio= CFO / (CFO + Cash from Investing Inflows + Cash from Financing Inflows)

External Financing Index Ratio =Cash from Financing / CFO

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