Cash income from operating activities ratio
factor.formula
Cash income from operating activities ratio:
in:
- :
The net cash flow generated from operating activities in the last 12 months (TTM). This indicator reflects the actual cash inflow minus the cash outflow from the company's main business activities, and is an important indicator for measuring the cash generation ability of the company's operating activities. Using TTM data can smooth short-term fluctuations and more stably reflect the long-term trend of the company's cash flow.
- :
Last 12 Months (TTM) operating income. This indicator reflects the total income earned by a company through the sale of goods or provision of services in a certain period of time. Using TTM data can smooth short-term fluctuations and more stably reflect the long-term trend of a company's operating income.
factor.explanation
The cash income ratio from operating activities is an important indicator to measure the quality of a company's operating income. The higher the ratio, the higher the proportion of the company's sales revenue collected in cash, the higher the profit quality, and the more stable the company's operating conditions. A lower ratio may mean that the company has more accounts receivable or a longer sales collection cycle, which may lead to certain operating risks. This indicator is of great significance in financial analysis and risk assessment, and can be used to judge the authenticity of a company's revenue and the stability of its operations. At the same time, this indicator can be combined with other financial indicators for analysis to better assess the company's financial health.