Cash to Net Income ratio Calculator

✖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.ⓘ Operating Cash Flow [OCF]			+10% -10%
✖Net income is a company's total earnings.ⓘ Net Income [NI]			+10% -10%

✖Cash Flow to Income measures the relationship between a company's operating cash flow and its net income.ⓘ Cash to Net Income ratio [CFI]

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Formula

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Cash to Net Income ratio

Formula

`"CFI" = "OCF"/"NI"`

Example

`"21"="4200000"/"200000"`

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Cash to Net Income ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cash Flow to Income = Operating Cash Flow/Net Income
CFI = OCF/NI
This formula uses 3 Variables

Variables Used

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

STEP 1: Convert Input(s) to Base Unit

Operating Cash Flow: 4200000 --> No Conversion Required
Net Income: 200000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CFI = OCF/NI --> 4200000/200000

Evaluating ... ...

CFI = 21

STEP 3: Convert Result to Output's Unit

21 --> No Conversion Required

FINAL ANSWER

21 <-- Cash Flow to Income

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 9 Performance Ratio Calculators

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Cash Flow per Share

Go Cash Flow per Share = (Operating Cash Flow-Preferred Dividends)/Total Common Shares Outstanding

Enterprise Value

Go Enterprise Value = Market Capitalization+Total Debt of Company-Cash and Cash Equivalents

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Market to Book Ratio

Go Market to Book value = Market Capitalization/Book Value of Equity

Return on Equity using Shareholder's Equity

Go Return on Equity = (Net Income/Average Shareholders' Equity)*100

Cash Return on Assets

Go Cash Return on Assets = Operating Cash Flow/Total Average Assets

Cash to Net Income ratio

Go Cash Flow to Income = Operating Cash Flow/Net Income

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

Cash to Net Income ratio Formula

Cash Flow to Income = Operating Cash Flow/Net Income
CFI = OCF/NI

How to interpret cash to income ratio?

While a higher Cash Flow to Net Income Ratio generally indicates better cash flow conversion, it is essential to compare the ratio against industry benchmarks and consider other financial indicators. Variations in industry dynamics, business models, and capital requirements can influence the expected range for the ratio, making industry-specific analysis crucial.

How to Calculate Cash to Net Income ratio?

Cash to Net Income ratio calculator uses Cash Flow to Income = Operating Cash Flow/Net Income to calculate 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 calculate Cash to Net Income ratio using this online calculator? To use this online calculator for Cash to Net Income ratio, enter Operating Cash Flow (OCF) & Net Income (NI) and hit the calculate button. Here is how the Cash to Net Income ratio calculation can be explained with given input values -> 21 = 4200000/200000.

FAQ

What is Cash to Net Income ratio?

The Cash to Net Income ratio measures the efficiency of converting net income into operating cash flow and is represented as CFI = OCF/NI or Cash Flow to Income = Operating Cash Flow/Net Income. 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 & Net income is a company's total earnings.

How to calculate Cash to Net Income ratio?

The Cash to Net Income ratio measures the efficiency of converting net income into operating cash flow is calculated using Cash Flow to Income = Operating Cash Flow/Net Income. To calculate Cash to Net Income ratio, you need Operating Cash Flow (OCF) & Net Income (NI). With our tool, you need to enter the respective value for Operating Cash Flow & Net Income and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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