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cash flow ratio is one of the most important cash flow ratios. Cash flow is an indication of how money moves into and out of the company and how you pay your bills.
cash flow relates to cash flows that a company accrues from operations to its current debt. It measures how liquidity a firm is in the short run since it relates to current debt and cash flows from operations.
Cash Flow Ratio: Its the ratio of a company operating cash flow to current liabilities, the importance of this ratio is to measure cash a company has on a hand, compared to current liabilities show expenses.
