Cash Flow Analysis Ratios measure how efficiently a business is managing its cash flow. These ratios help identify how well a business is generating cash to invest in new projects and expansion, make payments to suppliers, meet salaries and bills, among other expenditures. Generally, these ratios are used to measure the company’s ability to generate sufficient cash flow to meet its obligations. Some of the most commonly used cash flow analysis ratios include: Current Ratio, Quick Ratio, Operating Cash Flow/Current Liabilities Ratio, Cash Conversion Cycle and Operating Cash Flow/Net Income Ratio. By understanding how effectively management is utilizing their available cash, investors can have a better understanding of the potential for return on their investments.