Below are three commonly used ratios used to help investors analyze a company's cash flow. Cash flow measures a company's ability to continue to grow, without accessing potentially expensive outside capital or feeding upon itself through selling assets. Because it includes non-cash items such as depreciation and amortization, many view it as a more conservative and accurate indicator than earnings.
Current Share Price
Cash Flow Per Share Over the Last 4 Quarters*
* Cash Flow divided by the company's shares outstanding
Current Year Cash Flow - Last Year Cash Flow
Last Year Cash Flow
"20 per cent growth is often considered a benchmark, however, growth rates between industries range widely. Comparing an individual company to the industry average is often the best approach."
Total Debt Outstanding
Remember these are only benchmarks, each company should be evaluated on an individual basis.