Among the financial indicators denmark email list or ratios , also popularly known in the financial environment as KPI (Key Performance Indicators), the treasury ratio stands out for its usefulness .
In this article we explain what the cash flow ratio is.
Learn the keys to how to calculate and interpret it correctly.
The cash flow ratio, also known as the immediate liquidity ratio (RT), is part of the financial indicators used to analyze the company's financial statements in a given period.
This analysis will allow for a financial diagnosis to be made , which will allow the company to identify its financial strengths and weaknesses, optimize its financial resources and measure the achievement of its objectives.
What is the cash flow ratio or immediate liquidity coefficient (RT)?
The cash flow ratio measures the company's ability to meet its short-term payment obligations. To do so, it only takes into account assets that are already available or that only require the last phase of the operating cycle (collection) to be transformed into cash.
The cash flow ratio measures the financial situation of a business in the very short term.
This ratio differs from the solvency ratio in that, although both show the company's ability to pay its debts, the solvency ratio measures the company's overall solvency. That is, it divides the company's total assets by all liabilities, both short- and long-term.
