A cash ratio equal to or greater than one generally indicates that a company has enough cash and cash equivalents to entirely pay off all short-term debts. A ratio above one is generally favored. A ratio under 0.5 is considered risky because the entity has twice as much short-term debt co...
To calculate the cash ratio, you simply add your cash and cash equivalents together. Then, you divide this total number by your current liabilities. The figure you end up with is your cash ratio. The higher the cash ratio, the better. This means that your business is considered more liquid...
The cash flow coverage ratio does a good job of illustrating that, if a temporary slow-down in earnings hit the company, current obligations would still be met and the business could make it through such bumps in the road, though only for a short time. As with other financial calculations,...
The Price to Cash Flow ratio (P/CF) is a profitability ratio that compares the price of a company to the underlying cash flow. It is a valuation metric that
The price-to-cash flow (P/CF) ratio measures the value of a stock’s price relative to its operating cash flow per share.
The Operating Cash Flow Ratio, a liquidity ratio, is a measure of how well a company can pay off its current liabilities with the cash flow generated from its
Price to cash flow (P/CF) is a valuation ratio used to assess whether a stock is undervalued or overvalued. It is calculated by dividing the stock price of a company by its (operating) cash flow per share. Companies with lower P/CF ratio in comparison to their industry and competitors ...
Cash to income ratio is a cash flow ratio which measures dollars of cash flows from operating activities per dollar of operating income. It is calculated by dividing cash flows from operations by the operating income. Operating income roughly equals earn
Extending the cash turnover ratio by dividing 365 by the CTR provides the number of days, on average, that it takes for a company to replenish its cash balance. This formula is as follows: For example, if a company reports a cash turnover ratio of 2, the days it takes for cash reple...
PEG Ratio Formula Price to Book Value Price to Book Value Formula Price to Cash Flow Ratio Price To Sales Ratio Price to Rent Ratio Book To Market Ratio Market To Book Ratio Book Value Per Share Formula Enterprise Value Enterprise Value Multiples Income-Based Valuation Asset-Based Valuation Speci...