Cash Flow from Operations to Net Income Ratio

Cash Flow from Operations to Net Income = (cash flow

from operations) / net income
The cash flow from operations to net incomes ratio
indicates the extent to which net income generates cash in a
business.
A decline in the cash flow from operations to net income
ratio indicates a cash flow problem.

Cash Flow for Investing to Cash Flows from Operating and Financing

Cash Flow from Investing to Operating and Financing
= cash flows from investing / (cash flows fro operations
+ cash flows from financing)

This ratio compares the funds needed for investment to the
funds obtained from financing and operations.

Cash Flow from Sales to Sales Ratio

Cash Flow from Sales to Total Sales = (cash flow from
operations - dividends) / total sales

The cash flow from sales to sales ratio indicates the
degree to which sales generate cash retained by the
business.

A positive cash flow from sales to sales ratio means that
sales are generating cash flow.

Cash Flow Coverage Ratio

Formula to calculate cash flow coverage ratio:

Cash Flow Coverage Ratio = net income + depreciation
and amortization/total debt payments.

Cash flow coverage ratio definition and explanation:
The cash flow coverage ratio indicates the ability to make
interest and principal payments as they become due.
A cash flow coverage ratio of less than one indicates
bankruptcy within two years.

Cash Flow to Long Term Debt Ratio

Cash Flow to Long Term Debt = cash flow / long term
debt
The cash flow to long term debt ratio appraises the
adequacy of available funds to pay obligations.

Operations Cash Flow to Current Liabilities Ratio

Operations Cash Flow to Current Liabilities = cash flow
from operations / current liabilities

If the operations cash flow to current liabilities ratio
keeps increasing, it may indicate that cash inflows are
increasing and need to be invested.

Operations Cash Flow Plus Interest to Interest Ratio

Operations Cash Flow Plus Interest to Interest = (cash
flow from operations + interest) / interest
This ratio indicates the cash actually available to meet
interest charges.
A ratio of less than 1:1 (100%) indicates insufficient cash
flow is being generated to meet current interest payments