Debt-free, Cash-free Net Working Capital to Revenue
The financial metric "Debt-free, Cash-free Net Working Capital to Revenue" measures a company's operational efficiency by analyzing its financials. It is calculated by taking the difference between the current assets and current liabilities, excluding cash and interest-bearing debts, and dividing it by the total revenue of the company. It indicates the amount of cash that the company has tied up in its working capital management with regards to the revenue that it generates. A high ratio is desirable as it suggests that a company can convert its accounts receivable and inventory into cash quickly and effectively.
Additional Details
| Metric Name |
Type |
Default Period Type |
| dfcfnwc_to_rev |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
perc |
percentage |