The Drivers Module shows relationships between Direct Capital's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Direct Capital Investments Ltd over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities.
Direct Capital Inves Cash Flow from Operations vs. Current Ratio Fundamental Analysis
Direct Capital Investments Ltd is one of the top stocks in current ratio category among related companies. It is rated below average in cash flow from operations category among related companies . Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
|Current Ratio ( times )|
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investor or analyst to check on the quality of a company earnings.
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about company having enough liquid resources to meet current and long term debt obligations.
Direct Capital Inves Cash Flow from Operations Comparison
Direct Capital is currently under evaluation in cash flow from operations category among related companies.
Direct Capital is currently under evaluation in revenue category among related companies.