Become a Financial Modeling & Valuation Analyst (FMVA)®. Enroll today to advance your career!
Login to your new FMVA dashboard today!

Cash Conversion Ratio Template

Cash Conversion Ratio Template

This Cash Conversion Ratio Template will demonstrate how to calculate the cash conversion rate using the income statement and cash flow statement.

Here is a preview of the template:

Cash Conversion Ratio Template Screenshot

 

Download the Free Template

Enter your name and email in the form below and download the free template now!

Cash Conversion Ratio Template

Download the free Excel template now to advance your finance knowledge!

What is the Cash Conversion Ratio (CCR)?

The Cash Conversion Ratio (CCR), also known as cash conversion rate, is a financial management tool used to determine the ratio of the cash flows of a company to its net profit. In other words, it is a comparison of how much cash flow a company generates compared to its accounting profit.

CCR is a quick way to determine the disparity between a company’s cash flow and net profit. A high cash conversion ratio indicates that the company has excess cash flow compared to its net profit. For mature companies, it is common to see a high CCR because they tend to earn considerably high profits and have accumulated large amount of cash. In contrast, companies in the start-up or growth stage tend to have low or even negative cash flows due to the required amount of capital invested in the business. In early stages, companies often find themselves earning negative profits until they reach a break-even point, thus the CRR of these companies would also be negative or low.

 

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.

  • Excel Modeling Templates
  • PowerPoint Presentation Templates
  • Transaction Document Templates

Financial Analyst Certification

Become a certified Financial Modeling and Valuation Analyst (FMVA)® by completing CFI’s online financial modeling classes and training program!