meaning of cash to sales ratio

cash to sales ratio meaning in Business Dictionary

contrast of money balance after a period (usually expressed in amount of days or months) towards the sales revenue because period. What this means is the potency of the company's credit and collection guidelines, therefore the amount of money needed as buffer for unforeseen delays in cash collection. It will be the inverse of cash turnover proportion. Formula: typical cash balance (after an interval) รท Sales revenue (for the reason that period).