If the company has $900,000 in cash flow from operations as well as $150,000 in current liabilities, the operating cash flow ratio is ($900,000 divided by $150,000) equals 6.0 times.

In this article I present AAII’s strategy that explores the basics of cash flow analysis and the implementation of a price-to-free-cash-flow (P/FCF) screen.

Cash flow is the reason why many small businesses fail. Slow or nonpayments are a real concern, and as a firm owner, it's in your best interest to help your clients receive their payments faster and ...

Each ratio helps an investor understand a particular aspect of the company’s business. One such ratio, Price to Cash Flow (or P/CF), can work wonders in stock picking if used prudently.

Operating Cash Flow to Net Income Ratio = Operating Cash Flow / Net Income A ratio consistently above 1.0 is a strong indicator of high-quality earnings, suggesting that the company is effectively ...

The price/cash flow ratio calculates value by dividing a stock's current price by the company's free cash flow over the trailing 12 months. It represents the price investors are willing to pay for ...

Price to free cash flow ratio compares a company's market cap to its free cash produced. To calculate P/FCF, divide market capitalization by free cash flow from cash flow statement. Low P/FCF ...

When using the Foolish Flow Ratio to judge a company's cash holdings, you have to turn some of your assumptions upside down. ($ millions) Cash and cash equivalents $191 Short-term investments ...

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable ...