CFO to SalesView Financial Glossary Index
The Cash From Operations to Sales is a ratio that tells investors how capable a company is of generating cash from sales.
Investors often see a higher value of the ratio to be better for the company, similar to how they view high profit margins as better than low profit margins. However if a company has a low value of the ratio for a given period of time, it is not always a bad thing. A low ratio could mean that the company is increasing its net working capital in preparation for growth, but consistently low ratios are probably a bad sign.
CFO / Sales = Cash from Operations / Revenues