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,
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.
This Year = 3,592.19/ (18,240.83 – 418.80) = 0.202
Last Year = 1060.00 / (309.99 - 0.00) = 3.419