This ratio indicates
the cash a company can generate in relation to its size.
Things to remember
Comparing to previous years is
important. If the company's ratio is decreasing then
they may eventually run into cash problems.
[Click
on the buttons above to see the financial statements]
For Cory's Tequila Co.
$4,438
=
0.30
$14,725
Cash Flow to Assets Analysis:
Cash flow is often overlooked when people analyze a company.
You can be a profitable company but if you don't have cash moving
around to pay bills then you are really in trouble. It relates
a company's ability to generate cash compared to its asset size.
A ratio of 0.30 (30%) is quite good, Cory's Tequila Co. shouldn't
run into any problems generating cash. When the ratio declines
below 10% then there may be some cause for concern.
Disnat is a division of Desjardins Securities. Desjardins Securities is a member of the Investment Industry Regulatory
Organization of Canada (IIROC)
and a member of the Canadian Investor Protection Fund.
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