Jun 10, 2018 0 Comments

Cash Flow Margin Calculator is a tool that measures cash from operating activities as a percentage of sales revenue in a given period

- Cash Flow Margin:
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Background Information

- What does Cash Flow Margin mean?
- The Cash Flow Margin is an important profitability ratio. It tells that how well a company converts sales to cash. Cash is of critical importance because it's required to pay expenses; therefore, conversion of sales dollars to cash is vital.

- Formula
- Cash Flow Margin = Cash flows from operating activities / Net sales

- Example
Suppose a company ‘ABC’ generates $250,000,000 in sales last year and had $2,500,000 in operating cash flow.

According to the formula, Cash Flow Margin is:-

- = $2,500,000 / $250,000,000
- = 1%

- Jun 10, 2018
- Tool Launched

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