DEFINITION of 'Sales To Cash Flow Ratio'
A comparison of a company's sales to its cash flow. The sales to cash flow ratio is expressed on a pershare basis and is calculated by dividing sales per share by the cash flow per share:
Sales to Cash Flow Ratio =
Sales Per Share_____
Cost Flow Per Share
Higher ratios are more favorable and are indicative of positive financial strength within a company. The sales to cash flow ratio is an important metric for measuring financial strength, because it takes into consideration the company's output (sales) as the primary means of inbound cash flow.
BREAKING DOWN 'Sales To Cash Flow Ratio'
The two metrics used in the sales to cash flow ratio are sales per share and cash flow per share. Sales per share (also known as revenue per share) is a ratio that computes the total revenue earned per share throughout a 12month period. It is calculated by dividing total revenue earned (in a fiscal year) by the weighted average of shares outstanding (for the same fiscal year):
Sales Per Share =
Total Revenue/Sales____
Average Shares Outstanding
A company's cash flow per share is another measure of financial strength that is calculated by subtracting preferred dividends from operating cash flow and dividing the difference by common shares outstanding:
Cash Flow Per Share =
(Operating Cash Flow  Preferred Dividends)
Common Shares Outstanding

Cash Flow Per Share
A measure of a firm's financial strength, calculated as: Cash ... 
Free Cash Flow Yield
An overall return evaluation ratio of a stock, which standardizes ... 
Free Cash Flow Per Share
A measure of a company's financial flexibility that is determined ... 
Price to Free Cash Flow
A valuation metric that compares a company's market price to ... 
Free Cash Flow To Sales
A ratio that illustrates the percentage of free cash flow to ... 
Operating Cash Flow Margin
A measure of the money a company generates from its core operations ...

Investing
What Is the PriceToCashFlow Ratio?
A companyâs pricetocashflow ratio measures its stock price compared to its cash flow per share. 
Investing
Cash Flow Indicator Ratios
Learn about the operating cash flow to sales ratio, free cash flow to operating cash flow ratio and free cash flow coverage ratio. 
Investing
Free Cash Flow Yield: The Best Fundamental Indicator
Cash in the bank is what every company strives to achieve. Find out how to determine how much a company is generating and keeping. 
Investing
Analyze Cash Flow The Easy Way
Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors. 
Investing
The Essentials Of Corporate Cash Flow
Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself. 
Investing
Free Cash Flow Yield: A Fundamental Indicator
Free cash flow can measure a businessâs performance as if youâre looking at its net income line. 
Investing
Cash Flow From Investing
Cash flow analysis is a critical process for both companies and investors. Find out what you need to know about it. 
Investing
Fundamental Case Study: Is Amazon's Cash Flow Actually Solid? (AMZN)
Review Amazon's cash flow situation, including its free cash flow yield, operating cash flow from organic growth and cash flow from debt financing. 
Investing
Financial Ratios to Spot Companies Headed for Bankruptcy
Obtain information about specific financial ratios investors should monitor to get early warnings about companies potentially headed for bankruptcy. 
Managing Wealth
Cash Flow Is King: How to Keep it Running
Why is cash flow so important, and what steps can a business take to improve it?

What are some ratios I can use the operating cash flow ratio with?
Understand the importance of a company's operating cash flow. Learn about some of the financial ratios that use the operating ... Read Answer >> 
What is the difference between the operating the operating cash flow ratio and operating ...
Find out more about the operating cash flow ratio, the operating cash flow margin, how to calculate these ratios and the ... Read Answer >> 
Free & operating cash flows: What's the Difference?
Learn the difference between free cash flow and operating cash flow. Explore how analysts use earnings and cash flow to evaluate ... Read Answer >> 
Why do analysts look at operating cash flow?
Learn how operating cash flow is used to determine financial health. Examine how cash flow is calculated, and what a low ... Read Answer >> 
Are taxes calculated in operating cash flow?
Learn how taxes are involved with the calculations for operating cash flow, and find out about the importance of operational ... Read Answer >> 
What is the difference between cash flow and revenue?
Understand the difference between cash flow and revenue as they relate to corporate accounting and the financial evaluation ... Read Answer >>