The operation of the company is as alive as people. Cash flow is the heart of the company. When the gas is broken, the company is gone, and buying stocks will definitely lose money.
This module contains three indicators, namely:
1, the ratio of cash to total assets
2. Average days of cash collection
3、 100/ 100/ 10
Cash to total assets ratio formula:
Monetary funds: money in hand?
Trading financial assets: short-term investments, such as short-term stocks, bonds, funds, etc.
Total assets: the sum of all assets, including "current assets" and "long-term assets"
Current assets: strong liquidity. There are three main current assets, cash, accounts receivable and inventory.
Long-term assets: poor liquidity, not easy to flow in the short term. Mainly including long-term investment, factory buildings, equipment, land, etc.
Using the formula, the ratio of cash to total assets = monetary funds+transactional financial assets/total assets.
You can find the relevant data in the balance sheet of the stock, as shown in the figure.
I did the math myself, Gree Electric. Gree Electric has a monetary capital of 99.61100 million, tradable financial assets of 602 million and total assets of 21496.7 billion, 46.6.
The proportion of cash in total assets is better than 25%, or at least higher than 10%. If we only look at this indicator, Gree Electric is OK.
Find the company with the worst indicators in the industry
Finally, learn about Mr. MJ's nine swords of solitude.
In the income statement: sales (operating income), gross (gross profit margin), operating (operating profit margin), net (net interest rate) and EPS.
In the balance sheet: cash (ratio of cash to total assets), accounts receivable (accounts receivable), deposits (inventory), asset turnover rate (total assets turnover rate), sticky (ratio of liabilities to assets) and return on net assets (return on shareholders).
In the cash flow statement: OCF (cash flow from operating activities)
Today's course mind map