In this study, we perform an empirical investigation on a company named CMC. From the study, it is clear that the liquidity and solvency positions of the company were moderate whereas the company maintained low profitability. | Analysis of cash flow ratios A study on CMC Accounting 4 2018 41 52 Contents lists available at GrowingScience Accounting homepage ac Analysis of cash flow ratios A study on CMC Somnath Dasa a Assistant Professor of Commerce Rabindra Mahavidyalaya Champadanga Hooghly 712401 India CHRONICLE ABSTRACT Article history Cash flow ratios help financial users get relevant information about financial resources for a Received January 9 2017 given time. Cash flow ratios are now used more than the traditional ones because it is more Received in revised format effective and justified. Cash flow based ratios are especially surprising because they do not January 11 2017 only play a significant role in the credit rating of evaluation but also forecast the failure of a Accepted March 7 2017 Available online corporation. In this study we perform an empirical investigation on a company named CMC. March 7 2017 From the study it is clear that the liquidity and solvency positions of the company were Keywords moderate whereas the company maintained low profitability. On the other hand the efficiency Liquidity and sufficiency ratios of the study give us a new look on financial judgement. Solvency Profitability Efficiency Sufficiency Ratios 2017 Growing Science Ltd. All rights reserved. 1. Introduction Information related to cash flow helps financial statement users receive the relevant information concerning the use and source of financial resources over a given time period Rose et al. 2007 . Cash flow statement contains information associated with operating investing purposes of financial analysis because the effect of the traditional ratio analysis techniques has been well established in literature and financial activities Macve 1997 . Financial investment ratios are vital and many financial analysis depends on accounting performance through profitability measures such as return on assets and net sales to income. These forms of ratios however are .
