Cash Flow Ratios Calculator

This cash ratios calculator uses operating cash flow instead of net income to calculate three financial ratios. Unlike net income, cash flow is an objective measure of performance which cannot be manipulated or distorted using accounting assumptions and opinions.

Cash Flow Ratios Calculator September 26th, 2017Team
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Cash Flow Ratio Analysis

Cash flow ratios can be calculated using cash flow from operating activities found in the cash flow statement of a business. Using cash flow avoids the use of net income which is a subjective measure traditionally used in the calculation of accounting ratios.

Cash Flow Ratio Analysis September 25th, 2017Team
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Days Sales Outstanding

The days sales outstanding shows the average number of days your customers are taking to pay you. It is calculated by dividing average accounts receivables by the daily credit sales.

Days Sales Outstanding November 6th, 2016Team
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Operating Leverage

The operating leverage shows the level of fixed cost leverage within a business, and the degree of operating leverage shows the impact of the cost structure on the operating income of the business.

The operating income for a business with high leverage can change dramatically for a given change in the number of units sold, and its earnings are said to be more volatile and therefore more risky

Operating Leverage November 6th, 2016Team
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Return on Assets ROA

Return on assets or ROA measures the percentage rate of return a business gets on its assets. It is calculated by dividing the earnings before interest and tax by the total assets of the business.

Return on Assets ROA November 6th, 2016Team
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ROCE – Return on Capital Employed

ROCE or return on capital employed measures the percentage rate of return a business gets on its capital employed. It is calculated by dividing the earnings before interest and tax by the total assets less current liabilities of the business.

ROCE – Return on Capital Employed November 6th, 2016Team
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Inventory Days

The Inventory Days ratio shows the average number of days sales a business is holding in its inventory. It is calculated by dividing inventory by average daily cost of goods sold. It is sometimes called the Stock Days ratio.

Inventory Days May 23rd, 2017Team
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Net Profit Ratio

The net profit ratio is the profit after tax of the business expressed as a percentage of the revenue. It is calculated by dividing profit after tax by revenue.
The Net profit ratio is also called Net Margin or Net Profit Margin.

Net Profit Ratio November 6th, 2016Team
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Return on Sales

The return on sales is the operating profit of the business expressed as a percentage of the revenue. It is a measure of the level of true income a business generates on its sales. It is calculated by dividing operating profit by revenue. Operating profit is the same as profit before interest and tax (PBIT), otherwise called earnings before interest and tax (EBIT).

Return on Sales November 6th, 2016Team
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Interest Coverage Ratio

The interest coverage ratio measures the amount of earnings a business has to make interest payments. It is calculated by dividing the profit before interest and tax by the interest expense. It is sometimes called the interest cover ratio or simply interest coverage or interest cover.

Interest Coverage Ratio December 29th, 2016Team
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Working Capital Turnover Ratio

The Working Capital Turnover ratio shows the revenue generated by your working capital. It is a measure of the efficiency with which the business uses its resources. It is calculated by dividing revenue by the working capital.

Working Capital Turnover Ratio November 6th, 2016Team
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