Cash Flow Ratios
Cash Flow Margin and CFO / Assets
Let’s take a look at some cash flow ratios, like cash flow margin, against performance in 2021:
This is a pretty clear cut trend. However, if we look at Cash Flow From Operations over Assets it’s even more obvious:
Again, like with the other fundamental metrics, we are seeing what we would expect to see. Better underlying fundamentals means better return performance! Now, we have two more good ratios to add to our growing list.