Calculating the Operating Cash Flow Margin of Your Company’s Operations

The operational cash flow margin of your company is an essential metric that shows you how steady your earnings have been over time. In the case of a $25,000 monthly sales volume, but half of those sales are being returned on a regular basis, it is not a healthy cash flow situation. By measuring your … Read more

What Is The Operating Cash Flow Ratio And How Do You Calculate It?

operating cash flow ratio

In order to establish a company’s operating cash flow ratio, cash flows generated by the company’s operations are taken into account. Short-term liquidity can be estimated using this ratio for a company’s short-term liquidity. Because earnings can be easily manipulated, it is more accurate to evaluate cash flow rather than net income in order to … Read more

Depreciation Tax Shield Cash Flow And Tips For How Does It Use

Depreciation Tax Shield

A depreciation tax shield is a tax evaded causing by the deduction of depreciation in assets. We can analyze the taxable income with the assistance of multiplication of tax rate with reduction expense. The depreciation tax shield helps the company to maintain all the depreciation of the assets. Corporations using accelerated depreciation techniques can save … Read more