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Financial statements
How much of the reported operating profit actually arrived as cash.
Profit is an opinion until the cash turns up. This is where accounting profit gets checked against the bank balance.
Near a hundred means the profits are real. Persistently low means profits are tied up in unpaid bills or unsold stock.
| Below 50% | Much of the profit has not turned into cash. |
|---|---|
| 50% to 80% | Some of the profit is still tied up. |
| Above 80% | The reported profit is arriving as cash. |
Rough conventions for an ordinary company; sectors differ. A range is not a buy or sell level.
How much of the reported operating profit actually arrived as cash.
Profit is an opinion until the cash turns up. This is where accounting profit gets checked against the bank balance.
No. Cash conversion describes one aspect of a company, a price or a contract, and it is best read alongside other numbers and the business itself. Jivani Markets is a research and education platform; it does not give buy, sell or hold recommendations.