Utilization of Cash Flow Ratios in Financial Management

Utilization of Cash Flow Ratios in Financial ManagementCash flow ratios are the ratios are calculated using balance sheet, income statement, and the statement of cash flow.The statement of cash flow is used to calculate all of the 28 cash flow ratios.These ratios may be used in financial management.The financial managers can utilize the ratios in especially the seven functions of the financial management.They are financial analysis, working capital management, capital structure, capital budgeting, dividend policy, leverage, and valuation.All of the cash flow ratios could be used financial analysis and working capital management functions of the financial management.14 ratios in capital structure, 10 ratios in capital budgeting, 8 ratios in dividend policy, 8 ratios in leverage, and a ratio in valuation may be used.