I would like to measure cash flows of a firm by financial ratios. Which variables can I use to measure it with financial ratios?
Thank you
Dear Suleyman
One obvious way is to examine what banks call Debit Turnover (DTO) which is the amount if cash that flows into their bank account. This reflects actual cash received rather than invoiced sales.
Cheers Marc
What can you suggest me about that? There are some suggestions in the literature, but there is no universal rule for in sample and out of sample size.
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