Tool Slick

Cash Flow Margin Calculator

Cash Flow Margin Calculator is a tool that measures cash from operating activities as a percentage of sales revenue in a given period

All processing happens on the client-side, locally in your browser. No data is uploaded.

Cash flows from operations amount
Net sales amount
Cash Flow Margin
40.00

History

  • 2018-06-10Tool Launched

Background

What does Cash Flow Margin mean?
The Cash Flow Margin is an important profitability ratio. It tells that how well a company converts sales to cash. Cash is of critical importance because it's required to pay expenses; therefore, conversion of sales dollars to cash is vital.
Formula
Cash Flow Margin = Cash flows from operating activities / Net sales
Example

Suppose a company ‘ABC’ generates $250,000,000 in sales last year and had $2,500,000 in operating cash flow.

According to the formula, Cash Flow Margin is:-

  • = $2,500,000 / $250,000,000
  • = 1%