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Cash to Net Income ratio Formula

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Cash Flow to Income measures the relationship between a company's operating cash flow and its net income. Check FAQs

CFI = \frac{OCF}{NI}

CFI - Cash Flow to Income?OCF - Operating Cash Flow?NI - Net Income?

Cash to Net Income ratio Example

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Here is how the Cash to Net Income ratio equation looks like with Values.

Here is how the Cash to Net Income ratio equation looks like with Units.

Here is how the Cash to Net Income ratio equation looks like.

21 = \frac{4.2E+6}{200000}

21 = \frac{4.2E+6}{200000}

21 = \frac{4.2E+6}{200000}

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Cash to Net Income ratio Solution

Follow our step by step solution on how to calculate Cash to Net Income ratio?

FIRST Step Consider the formula

CFI = \frac{OCF}{NI}

Next Step Substitute values of Variables

∴

CFI = \frac{4.2E+6}{200000}

Next Step Prepare to Evaluate

∴

CFI = \frac{4.2E+6}{200000}

LAST Step Evaluate

∴

CFI = 21

Cash to Net Income ratio Formula Elements

Variables

Cash Flow to Income

Cash Flow to Income measures the relationship between a company's operating cash flow and its net income.

Symbol: CFI

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Cash Flow to Income

Operating Cash Flow

Operating Cash Flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization.

Symbol: OCF

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Operating Cash Flow

Net Income

Net income is a company's total earnings.

Symbol: NI

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Net Income

Other formulas in Performance Ratio category

Go Cash Flow to Sales

CFS = \frac{OCF}{S}

Go Cash Return on Assets

ROA c = \frac{OCF}{TAA}

Go Return on Equity using Shareholder's Equity

ROE = (\frac{NI}{E avg}) \cdot 100

Go Cash Flow per Share

CF Share = \frac{OCF - PD}{CSO total}

How to Evaluate Cash to Net Income ratio?

Cash to Net Income ratio evaluator uses Cash Flow to Income = Operating Cash Flow/Net Income to evaluate the Cash Flow to Income, The Cash to Net Income ratio measures the efficiency of converting net income into operating cash flow. Cash Flow to Income is denoted by CFI symbol.

How to evaluate Cash to Net Income ratio using this online evaluator? To use this online evaluator for Cash to Net Income ratio, enter Operating Cash Flow (OCF) & Net Income (NI) and hit the calculate button.

FAQs on Cash to Net Income ratio

What is the formula to find Cash to Net Income ratio?

The formula of Cash to Net Income ratio is expressed as Cash Flow to Income = Operating Cash Flow/Net Income. Here is an example- 21 = 4200000/200000.

How to calculate Cash to Net Income ratio?

With Operating Cash Flow (OCF) & Net Income (NI) we can find Cash to Net Income ratio using the formula - Cash Flow to Income = Operating Cash Flow/Net Income.

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Cash to Net Income ratio Formula

Cash to Net Income ratio Example

Cash to Net Income ratio Solution

Cash to Net Income ratio Formula Elements

Other formulas in Performance Ratio category

How to Evaluate Cash to Net Income ratio?

FAQs on Cash to Net Income ratio

Variable Name