Cash flow sales rate

The cash flow turnover ratio indicates what percentage of the turnover flowed back as financial income (e.g. for investments, loan repayments and profit distribution) with an effect on liquidity . The higher the percentage , the higher the financial surplus for the period. Since the cash flow is less subject to balance sheet policy than the profit, the cash flow return on sales is a good indicator of the operative earnings and financing power of a company.

${\displaystyle {\text{Cash-Flow-Umsatzrate}}={\frac {\text{Cash-Flow}}{\mathrm {Umsatzerl{\ddot {o}}se} }}}$

see also: cash flow