Posted inAll private sectors / Finance & Control / Financial / Sales

Cash Flow from Operations to Sales Ratio

Definition of this KPI:
This ratio measures the efficiency with which a company is converting its sales into cash from operations. It reflects the quality of earnings and the effectiveness of cash management practices.


  • This KPI can be calculated as: (Operating Cash Flow / Net sales) x 100
  • The KPI will be measured as: ratio (number)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Improve the ratio to ensure that a higher percentage of sales is converted into cash, which supports liquidity and strengthens the company’s operational capabilities.
    • Rate this post

    Related posts

    1. KPIs to Analyze a Balance Sheet
    2. Mastering Financial Excellence: top 10 CFO KPIs
    3. The Most Important KPIs for CEOs

    Leave a Reply

    Your email address will not be published. Required fields are marked *


    The reCAPTCHA verification period has expired. Please reload the page.