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What percentage, which shows the extent of the profits in the company's ability to generate operating cash flow?

<p>1 - ratios of operational activity indicators</p> <p>2 - the flow of operational activity ratios</p> <p>3 - monetary indicators and operational ratios</p> <p>4 - cash coverage ratios</p> <p>Nothing</p>

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Question added by Deleted user
Date Posted: 2014/11/04
georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

1 - ratios of operational activity indicators 

 

Operating cash index = net cash flow from operating activities divided by net income. 

 

This ratio shows the extent of the company's ability to generate profits of operating cash flows. This percentage from the previous figure in that they take into account the interest and taxes vary.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Ratios of operational activity indicators

Ahmed Abd Alwahab Awad Ibrahim
by Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

1 - ratios of operational activity indicators

 

Financial analysis concepts more wide to get many ratios as you mentioned for specified purpose to compare and to know how much from profit or generate cash flow by merging between two ratio profitability & cash ratios 

I think we can use the below ratios

 

- Profitability ratio = Net Income ÷ Net Sales

- Cash sales Ratio = Net Cash from Operating activity ÷ Net Sales

 

by merging two ratios

Cash Profit Ratio = Net Cash from Operating activity ÷ Net Income

to measure how much generate cash from profit