Cash from operations to current liabilities ratio is a ratio that shows how many times a company can pay off its current liabilities with the cash generated from its normal business activities in the past year. It helps to measure how well a company can manage its short-term debts without taking on more debt. The formula for cash from operations to current liabilities ratio is:
Cash from operations to current liabilities ratio = Trailing 12 Month Cash from Operations / Average Current Liabilities
Where:
- Trailing 12 Month Cash from Operations is TM016,
ttm_cash_from_oper
- Current Liabilities is BS050,
bs_cur_liab