Hi Donald/Team,
I wanted to know more about Cash Return Ratio and what is the ideal measure for us to further introspect into the Company. Do we calculate anything above Bank interest Rate?
And also wanted to know how Good is the Cash return ratio measure ?
Can some please help?
Computing return ratios based on free cash flows can be better than those based on earnings because cash flows are more difficult to manipulate.
I have also started learning more about analyzing companies, and found the following links helpful:
A short video course on stock valuation https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/valuation-and-investing/
Another video course on accountinghttps://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme
You could use earnings or cash flows to understand how efficient the company is at utilizing its assets or capital. This is another link which pointed me in the right direction :http://www.oldschoolvalue.com/blog/tutorial/measure-management-effectiveness-roa-roe/
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