Red Flags

CF Accrual Ratio

For an introduction to the Cash Flow Aggregated Accrual Ratio (CF Accrual Ratio), see the BS Accrual Ratio described above.

$$\mathrm{CF\; Aggregate\; Accruals\; Ratio}=\frac{\mathrm{Cash\; Flow\; Aggregated\; Accruals}}{\mathrm{Average}(\mathrm{Net\; Operating\; Assets\; y-1},\mathrm{Net\; Operating\; Assets})}$$

$$\mathrm{Cash\; Flow\; Aggregated\; Accruals}=\mathrm{Net\; Income}-(\mathrm{Cash\; Flow\; from\; Operations}+\mathrm{Cash\; Flow\; from\; Investments})$$

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