OCF is important for the following reasons: The operating cash flow ratio represents a company's ability to pay its debts with its existing cash flows. It is determined by dividing operating cash ...

Metrics such as the cash conversion cycle, current ratio, and operating cash flow provide valuable insights into how well a ...

If we ignore the DPO, we get the so-called operating cycle, which is the time between buying inventory and collecting cash from its sale. A high turnover ratio implies that the company is ...