AOTG: What is Sales Ratio in AOTG?

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Question : What is Sales Ratio in AOTG?

Answer :

The cash flow to sales ratio compares the operating cash flows of a company to its sales revenue. This ratio provides analysts and investors an indicator to the ability of a company to generate cash from its sales. In other words, it shows the ability of a company to turn its sales into cash.


To view the sales ratio, login on to Dashboard > Financial > Cash Flow,

Salesratio1.jpg

System will auto capture Sales Ratio of the current date. Example: 0.202 (This Year) & 3.419 (Last Year)


You can refer to P&L Statement & Cash Flow Statement for the figure taken to calculate Operating Cash Flow Ratio.


P&L Statement

Salesratio2.jpg


Cash Flow Statement

Salesratio3.jpg


  • Operating Cash Flow = Sum (Type: Operating Cash Flow)

  • Sales = CR (Type: Sales) - DR (Type: Sales) [Sales(CR) - Sales Adjustment(DR)]

  • Sales ratio = Operating Cash Flow/Sales

This Year = 3,592.19/ (18,240.83 – 418.80) = 0.202

Last Year = 1060.00 / (309.99 - 0.00) = 3.419


By : CK 180718, Lay Swan 180803, P180803



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