Cash Conversion Ratio or Cash Conversion Rate

Jun 11, 2019

Cash is king so we need to know if companies are earning cash or not!

Here I have found a very easy explanation of Cash Conversion Ratio so thought to share with you.

The Cash Conversion Ratio (CCR), also known as cash conversion rate, is a financial management tool used to determine the ratio of the cash flows of a company to its net profit. In other words, it is a comparison of how much cash flow a company generates compared to its accounting profit.

Cash Conversion Ratio = Cash Flows / Net Profits

For more detailed explanation head here.

My creation of Ratio on with Explanation on one of them.

Cash Conversion Ratio with Explanation

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