Fundamental Analysis

Cash Flow Analysis Ratios

Cash Flow Analysis Ratios

Ratio Formula Calculator Description
Operating Cash Flow Ratio OCF Ratio = Operating Cash Flow / Current Liabilities
Measures how well current liabilities are covered by cash flow from operations.
Cash Flow to Debt Ratio CF to Debt = Operating Cash Flow / Total Debt
Indicates the ability of a company to cover its total debt with operating cash flow.
Free Cash Flow Free Cash Flow = Operating Cash Flow – Capital Expenditures
Measures cash generated after accounting for cash outflows to support operations.
Cash Flow Yield Cash Flow Yield = Operating Cash Flow / Market Capitalization
Measures the cash flow return on the market value of the company.

Recommended Ratio Values

Ratio Good Value
Operating Cash Flow Ratio 1.5 or higher
Cash Flow to Debt Ratio 0.2 or higher
Free Cash Flow Positive value
Cash Flow Yield 5% or higher
Fundamental Analysis Ratios

Fundamental Analysis Ratios

Ratio Formula Calculator Description
P/E Ratio (Price-to-Earnings) P/E = Price per Share / Earnings per Share (EPS)
Measures the price investors are willing to pay per dollar of earnings.
P/B Ratio (Price-to-Book) P/B = Price per Share / Book Value per Share
Indicates how much investors are paying for a company’s net assets.
Debt-to-Equity Ratio Debt-to-Equity = Total Debt / Total Equity
Assesses a company’s financial leverage and risk.
Current Ratio Current Ratio = Current Assets / Current Liabilities
Measures a company’s ability to pay short-term obligations.

Recommended Ratio Values

Ratio Good Value
P/E Ratio 15 – 20
P/B Ratio Less than 3
Debt-to-Equity Ratio Less than 1
Current Ratio 1.5 – 2.0

Question input: Write all 25 formulas in html for fundamental analysis (cash flow ratios) required for company stock comparison and add in formula calculator for each (cash flow) ratio with last table recommending what is a good ratio value or better.