Hello, what’s the definition of cash ratio shown in the financial flow chart? The criteria must be greater than 0.5
Hi Zhi Gui,
We had recently did an upgrade on IQ system. In the past, we used to have cash ratio in it but what I realised is that if the company have cash more than debt, using the cash ratio will become redundant. In the event where the debt is more than cash, you just have to make sure that the debt to cash flow ratio is less than 5x. Hence, you can ignore the cash ratio part. we will do up a new flow chart in the coming weeks.
Please login or Register to submit your answer