by Ekrem Duman | Jun 2, 2026 | Cash Flow Metrics, KPIs & Metrics
⚡ TL;DRThe cash flow to debt ratio measures how well a company can repay its debt from the cash it generates: operating cash flow divided by total debt. A ratio of 0.25 means the company generates enough cash to repay a quarter of its debt each year — implying roughly...
by Ekrem Duman | Jun 2, 2026 | Cash Flow Metrics, KPIs & Metrics
⚡ TL;DRFree cash flow conversion measures what proportion of profit a company turns into free cash flow: free cash flow divided by net income (or EBITDA). A conversion of 90% means 90 cents of every dollar of profit becomes free cash. High, stable conversion confirms...
by Ekrem Duman | Jun 2, 2026 | Cash Flow Metrics, KPIs & Metrics
⚡ TL;DRCash flow margin is operating cash flow divided by revenue, expressed as a percentage. A 15% cash flow margin means the company converts 15 cents of every sales dollar into operating cash. Unlike profit margin, it measures real cash generation efficiency,...
by Ekrem Duman | Jun 2, 2026 | Cash Flow Metrics, KPIs & Metrics
⚡ TL;DRFree cash flow (FCF) is the cash left after a company pays for the capital expenditure needed to maintain and grow its business: operating cash flow minus capital expenditure. It is the cash truly available to repay debt, pay dividends, buy back shares, or make...
by Ekrem Duman | Jun 2, 2026 | Cash Flow Metrics, KPIs & Metrics
⚡ TL;DROperating cash flow (OCF) is the cash a company generates from its core business operations, found on the cash flow statement. It starts from net income and adds back non-cash charges, then adjusts for working-capital changes. Unlike profit, it shows real cash,...
