The current ratio is a financial ratio that measures a company’s ability to pay off its short-term debt obligations with its current assets. It is a commonly used measure of liquidity, as it provides an indication of a company’s ability to meet its financial obligations in the near future. The formula for calculating the current… Read More »
The cost of equity is the return that a company must offer to its shareholders to compensate them for the risk they take in investing in the company’s stock. It is one of the components used in calculating a company’s weighted average cost of capital (WACC). The cost of equity is calculated using the capital… Read More »
The cash ratio is a financial ratio that measures a company’s ability to pay off its short-term debt obligations with its cash and cash equivalents. It is a more conservative measure of liquidity than the current ratio, as it only considers a company’s most liquid assets. The formula for calculating the cash ratio is as… Read More »
Cash flow to stockholders is a financial metric that measures the net cash flow a company pays to its stockholders (i.e. shareholders) during a given period. It is also known as cash flow to equity. The cash flow to stockholders is calculated by subtracting a company’s dividend payments to its stockholders from its net income… Read More »
Cash flow to creditors is a financial metric that measures the net cash flow a company pays to its creditors (i.e. lenders and bondholders) during a given period. It is also known as cash flow to debt. The cash flow to creditors is calculated by subtracting a company’s interest payments to its creditors from its… Read More »
The cash flow identity is a fundamental principle in finance that states that the cash flow from a company’s operations, investing activities, and financing activities must all equal each other over a given period of time. The cash flow identity is expressed by the following equation: Cash Flow from Operations + Cash Flow from Investing… Read More »
Cash flow from assets is a financial metric that measures the cash generated or used by a company’s operating, investing, and financing activities. It is also known as cash flow from operations or cash flow from operating activities. The cash flow from assets is calculated by subtracting a company’s capital expenditures (money spent on long-term… Read More »
The cash cycle, also known as the cash conversion cycle, is a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash received from sales. The cash cycle is used to evaluate a company’s efficiency in managing its working capital. The cash cycle… Read More »
The cash coverage ratio is a financial ratio that measures a company’s ability to pay off its current liabilities with its available cash and cash equivalents. The cash coverage ratio is also known as the cash ratio or the liquidity ratio. The cash coverage ratio is calculated by dividing a company’s cash and cash equivalents… Read More »
The capital intensity ratio is a financial ratio that measures the amount of capital required to generate a certain level of revenue or sales. It is calculated by dividing the total assets of a company by its annual sales revenue. The capital intensity ratio reflects the degree to which a company relies on its assets… Read More »