formula for accruals ratio

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catman

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Commuting in with out my books and cant remember the accruals ratio formula for the balance sheet ? Anyone….
Thanks
 
1. (total asset - total cash) - (total liabilities - total debt)
2. ni - cfo - cfi
 
Thanks guys. The brain just never turned on this am.
 
can anyone explain intuititively why cfo and cfi need to be subtracted from NI?
 
You are measuring the _difference_ between your net income (where you can lie a lot like Goldman Sachs) versus what is actually received in cash, which would result in your accruals. Some of the gains/losses in net income can be classified as investment inflows/outflows in the cash statement so we want to subtract CFI in addition to CFO
 
NI has nothing to do with CFF? Only CFI and CFO, right?
 
[truth+lies] - [truth] = lies
[NI] - [CFO-CFI] = accruals
CFO and CFI related to NI in a ‘special’ way not accompolished by CFF - hence CFF got kicked out of the fraternity club of C’s.
 
haha Nice Swap.
I accept the fact that CFF is out of the club. But why does it get the boot? Is this a simple answer? am I being stupid as usual? haha
 
CF_AHHHHH, what income statement term for US GAAP involves cash flow from financing?
 
No, no i’m with you… I just wanted to make sure before I made an assumption. So many things to remember these days, even the simple stuff is jumbling.
 
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