✖Operating Cash Flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization.ⓘ Operating Cash Flow [OCF]			+10% -10%
✖Sales is the total sales for the period.ⓘ Sales [S]			+10% -10%

✖Cash flow to sales is used to compare a company’s sales revenues with its cash flow from operations, thereby revealing how well the company can generate cash flows from its sales.ⓘ Cash Flow to Sales [CFS]

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Formula

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Cash Flow to Sales

Formula

`"CFS" = "OCF"/"S"`

Example

`"4.2"="4200000"/"1000000"`

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Cash Flow to Sales Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cash Flow to Sales = Operating Cash Flow/Sales
CFS = OCF/S
This formula uses 3 Variables

Variables Used

Cash Flow to Sales - Cash flow to sales is used to compare a company’s sales revenues with its cash flow from operations, thereby revealing how well the company can generate cash flows from its sales.
Operating Cash Flow - Operating Cash Flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization.
Sales - Sales is the total sales for the period.

STEP 1: Convert Input(s) to Base Unit

Operating Cash Flow: 4200000 --> No Conversion Required
Sales: 1000000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CFS = OCF/S --> 4200000/1000000

Evaluating ... ...

CFS = 4.2

STEP 3: Convert Result to Output's Unit

4.2 --> No Conversion Required

FINAL ANSWER

4.2 <-- Cash Flow to Sales

(Calculation completed in 00.004 seconds)

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Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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< 9 Performance Ratio Calculators

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Cash Flow per Share

Go Cash Flow per Share = (Operating Cash Flow-Preferred Dividends)/Total Common Shares Outstanding

Enterprise Value

Go Enterprise Value = Market Capitalization+Total Debt of Company-Cash and Cash Equivalents

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Market to Book Ratio

Go Market to Book value = Market Capitalization/Book Value of Equity

Return on Equity using Shareholder's Equity

Go Return on Equity = (Net Income/Average Shareholders' Equity)*100

Cash Return on Assets

Go Cash Return on Assets = Operating Cash Flow/Total Average Assets

Cash to Net Income ratio

Go Cash Flow to Income = Operating Cash Flow/Net Income

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

< 22 Important Formulas of Financial Ratios Calculators

Fixed Charge Coverage Ratio

Go Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)

Free Cash Flow to Firm

Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Average Collection Period

Go Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)

Revenue Growth Rate

Go Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100

Sales Growth Rate

Go Sales Growth Rate = ((Current Period Sales-Previous Period Sales)/Previous Period Sales)*100

Business Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Interest Coverage Ratio

Go Interest Coverage Ratio = Earnings Before Interest and Taxes/Interest Expense

Debt to Equity Ratio

Go Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Receivables Turnover Ratio

Go Receivables Turnover Ratio = Net Sales/Average Accounts Receivables

Free Cash Flow

Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures

Fixed Asset Turnover Ratio

Go Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets

Equity Multiplier

Go Equity Multiplier = Total Assets/Total Shareholders' Equity

Inventory Turnover Ratio

Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory

Sales to Receivables Ratio

Go Sales to Receivables Ratio = Net Sales/Net Receivables

Debt to Assets Ratio

Go Debt to Assets Ratio = Total Liabilities/Total Assets

Business Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

Total Asset Turnover

Go Total Asset Turnover = Sales/Total Assets

Cash Flow to Sales Formula

Cash Flow to Sales = Operating Cash Flow/Sales
CFS = OCF/S

What is a good operating cash flow to sales ratio?

Well, similar to other efficiency ratios, there’s no standard value or guideline for this ratio. In fact, the higher the ratio, the better. To use this ratio effectively, you should also consider comparing the ratio value of one company with that of its competitors. By doing so, you can easily determine which company is more efficient in creating cash flow from selling its products or services.

How to Calculate Cash Flow to Sales?

Cash Flow to Sales calculator uses Cash Flow to Sales = Operating Cash Flow/Sales to calculate the Cash Flow to Sales, The Cash Flow to Sales formula is the ratio of a company's operating cash flow and its net sales. Cash Flow to Sales is denoted by CFS symbol.

How to calculate Cash Flow to Sales using this online calculator? To use this online calculator for Cash Flow to Sales, enter Operating Cash Flow (OCF) & Sales (S) and hit the calculate button. Here is how the Cash Flow to Sales calculation can be explained with given input values -> 4.2 = 4200000/1000000.

FAQ

What is Cash Flow to Sales?

The Cash Flow to Sales formula is the ratio of a company's operating cash flow and its net sales and is represented as CFS = OCF/S or Cash Flow to Sales = Operating Cash Flow/Sales. Operating Cash Flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization & Sales is the total sales for the period.

How to calculate Cash Flow to Sales?

The Cash Flow to Sales formula is the ratio of a company's operating cash flow and its net sales is calculated using Cash Flow to Sales = Operating Cash Flow/Sales. To calculate Cash Flow to Sales, you need Operating Cash Flow (OCF) & Sales (S). With our tool, you need to enter the respective value for Operating Cash Flow & Sales and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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