Ratios: Cash Return on Assets definitions Flashcards
Ratios: Cash Return on Assets definitions
You can tap to flip the card.
Control buttons has been changed to "navigation" mode.
1/14Skip to main content
Cash Return on Assets
Efficiency metric showing operating cash flows generated per dollar of average total assets, typically expressed as a percentage. Operating Cash Flows
Cash generated from core business activities, reported in the first section of the statement of cash flows. Average Total Assets
Mean value calculated by adding beginning and ending total asset balances and dividing by two. Statement of Cash Flows
Financial report detailing cash inflows and outflows from operating, investing, and financing activities. Net Income
Profit remaining after all expenses, taxes, and costs are subtracted from total revenue. Investing Activities
Section of the statement of cash flows reflecting cash used for or received from buying and selling long-term assets. Financing Activities
Section of the statement of cash flows showing cash flows related to borrowing, repaying debt, and equity transactions. Efficiency
Measure of how effectively a company uses its assets to generate cash from operations. Percentage Form
Expression of a ratio by multiplying by 100, moving the decimal two places to the right. Red Flag
Warning sign indicating potential financial trouble, such as negative operating cash flows. Net Cash Outflow
Situation where cash payments exceed cash receipts during a period, resulting in negative cash flow. Numerator
Top part of a ratio formula, representing the value being measured, such as operating cash flows. Denominator
Bottom part of a ratio formula, representing the base value, such as average total assets. Asset Utilization
Extent to which a company leverages its assets to generate cash or income.
03:30
