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Webster's New World Finance and Investment Dictionary » cash flow to assets
cash flow to assets
cash flow to assets definition - finance
A financial ratio that measures how well a company is
able to generate cash from its current operations. Calculate cash flow to
assets by subtracting net cash flows from operating activities and dividing the
resulting number by average total assets. This ratio measures a companyÂ’s
cash-generating efficiency using cash flow to assets. Other ratios accomplish a
similar objective by using cash flows and cash flows to sales.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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