Net operating cash flow to net increase in cash and cash equivalents (TTM)
factor.formula
Net cash flow from operating activities/Net increase in cash and cash equivalents (TTM) ratio = Net cash flow from operating activities (TTM) in the last 12 months / Net increase in cash and cash equivalents (TTM) in the last 12 months
Refers to the net amount of cash inflow from operating activities minus cash outflow in the past 12 months, reflecting the cash creation ability of the company's main business. This is a cumulative value of 12 rolling months (Trailing Twelve Months).
Refers to the net increase in the company's total cash and cash equivalents in the past 12 months, reflecting the changes in the company's overall cash flow. Cash equivalents generally include short-term, highly liquid investments that are easily converted into cash. This is also a rolling 12-month cumulative value (Trailing Twelve Months).
factor.explanation
This ratio is used to measure the structure of a company's cash flow, with a particular focus on the role of operating activities in cash flow generation. This indicator helps assess whether the cash generation capacity of a company's operating activities is sufficient to support its own operations and development, as well as the stability and quality of its cash flow. A higher ratio generally means that a company relies more on its main business to generate cash rather than external financing, which is considered a sign of good financial health. A low or negative ratio may suggest that the company is in poor cash flow condition and may rely on external financing or asset sales to maintain operations. This indicator can be compared with other companies in the same industry to assess the company's cash flow management level.