Các mối quan hệ tồn tại giữa sự pha trộn bán hàng, kiểm tra trung bình, và tổng lợi nhuận được thảo luận, cũng như các chủ đề của doanh thu an toàn và giá cả tích hợp. Trình đơn kỹ thuật, mà sẽ bao gồm tất cả các chi phí của hoạt động bao gồm thu nhập ròng sau thuế. | 428 CHAPTER 10 CASH FLOWS AND WORKING CAPITAL ANALYSIS This ratio is a more realistic one than the ratio for the number of times interest earned because interest has to be paid with cash not with net income. This ratio can provide a more obvious warning that an inability to pay interest may be on the horizon than does the traditional interest coverage ratio. The higher this ratio is the more comfortable the creditors will be. CASH FLOW FROM OPERATING ACTIVITIES MARGIN The cash flow from operating activities margin ratio is a profitability ratio and is calculated as follows Cash flow from operating activities Sales revenue In our case given the cash flow amount of 290 900 and Exhibit the calculation is 290 900 7 262 400 or 4 The ratio compares the amount of cash generated per dollar of sales. Although this ratio is similar to the profit margin ratio discussed earlier it is again considered more realistic since it compares sales revenues with cash rather than net income. In our case because the cash flow of 290 900 is higher than the net income of 141 100 we know the cash flow from operating activities margin ratio will be higher than the profit margin ratio because both ratios use the same denominator. AN TO ALYSIS OF CHANGES WORKING CAPITAL The SCF provides additional information needed for effective cash management and budget planning. Working capital analysis is closely related to the SCF and provides another view of information in support of effective management of cash. Working capital is defined as the excess of current assets compared to current liabilities and indicates the amount of excess current assets relative to current liabilities available to conduct revenue-generating operations. Total current asset minus total current liabilities is the value of working capital CA CL . These terms are defined as follows ANALYSIS OF CHANGES TO WORKING CAPITAL 429 Current assets consist of cash marketable securities notes receivable credit card receivables .
