Cash Is Being Generated Proportionately To Your Asset Base
Your Assets Are Efficiently Employed
What Is Cashflow To Total Assets?
What Does It Mean?
How Is It Calculated?
How Can I Improve My Cashflow To Total Assets?
What is my CTA ratio? The CTA indicator provides an understanding of how cash is generated relative to the asset base of the company. Generally, the higher the indicator, the more efficient the asset base of the company is in generating revenues. Generally, this should be greater than 1 – i.e. $1 of asset generates $1 of revenue. Please note, that Jazoodle calculates the Cash generated from operating activities only and ignores cash from financing or investing.
Your assets generate cash in the form of revenues and other efficiencies within your business. This measure assesses how relatively good your assets are at generating free cash within your business. Check cash to assets ratio with Jazoodle now.
Jazoodle derives your CTA ratio by
Cashflow From Operating Activities (amount)
Total Assets (amount)
Your cashflow to total assets ratio can be improved by a number of things, including: