Cash Flow from Operating Activities Ratio (TTM)
factor.formula
Cash Flow from Operating Activities Ratio (TTM) =
in:
- :
The net cash flow generated from operating activities in the last 12 months (rolling). This value represents the net amount of cash inflow minus cash outflow actually generated in the company's daily operating activities, reflecting the cash creation ability of the company's main business. Using rolling 12-month data can eliminate seasonal fluctuations and more accurately assess the company's continued cash flow generation ability.
- :
The total operating income of the last 12 months (rolling). This value refers to the total income earned by the company through the sale of products or provision of services through its main business in the past 12 months. Using rolling 12-month data can also eliminate seasonal fluctuations and more accurately reflect the company's revenue scale.
factor.explanation
This indicator is used to evaluate the sales quality and cash collection ability of the company's main business. A higher cash income ratio from operating activities (TTM) means that the company's sales revenue has a higher cash content, good income quality, and may have stronger profitability and financial stability. This indicator can effectively supplement the income statement information and provide investors with a more comprehensive financial perspective. It should be noted that this indicator should not be used independently, but should be combined with other financial indicators and industry characteristics for comprehensive analysis. For example, some industries may have a higher proportion of credit sales, resulting in a relatively low indicator.