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Definition of 'Sales to Cash Flow Ratio'
A measure of whether or not a company's sales are high in comparison to its cash flow.
Calculated as:
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Investopedia explains 'Sales to Cash Flow Ratio'
You want this ratio to be as high as possible. A high ratio is a sign of a strong company.
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If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios.
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Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
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