Cash Flow Return on Assets, usually the abbreviation ROA(CF) is used. It is a term that indicates what part of the revenue the enterprise generates from the capital bound in the property. The indicator is derived from the Return on Assets (ROA) indicator. Instead of profit, the numerator appoints CF. Calculation:
CF from operations / Assets
The indicator is one of the indicators based on cash flow.
Use of the Cash Flow Return on Assets in practice: In the business, it is used by the CFO in the financial analysis to analyze ratios. Cash Flow indicators try to catch the warning signs of potential credit problems and assess the internal financial potential of the enterprise.