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Sagot :
Cash flow on total assets is computed as, Cash flow from operations divided by total assets.
What does Cash flow refer to?
The net amount of cash and cash equivalents transferred into and out of a business is referred to as cash flow. All cash receipts, such as sales of goods and services and any other cash inflows, are included, as are all cash payments, such as costs of goods sold, operating expenses, and any other cash outflows. When a retailer, purchases inventory, money leaves the company and goes to its suppliers. Operating cash flow, investing cash flow, and financing cash flow are the three types of cash flow.
What is Net amount?
Net amount is the final amount after all deductions, such as taxes, fees, and discounts, have been taken from the total amount. It is also known as the net total or the bottom line.
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