operating cash flow to sales ratio
Definition
Percentage measure of a firm's ability to convert sales into cash, and an important indicator of its creditworthiness and productivity. A high number means the firm will be able to grow because it has sufficient cash flow to finance additional production, a low number indicates the opposite. Formula: Cash flows from operating-activities x 100 ÷ Sales revenue.
operating cash flow to sales ratio is in the Accounting & Auditing subject.
operating cash flow to sales ratio appears in the definition of the following term: operating ratios
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