Accrual Ratio (CF)

Accrual  Ratio CF (Cash Flow)= (Net profit – Cash flow from Operating  Activities - Adjusted cash flow from Investment Activities) / (Average Net Operating Assets)

Average Net Operating Assets = Total Assets - Cash - Total Liabilities - Total Debt

The best companies are those with biggest negative Accrual Ratio CF value. This is mainly because of depreciation which is deducted to get to Net profit but added to get Cash Flow from Operating Activities.

For example, to select the 20% of companies with the best Accrual Ratio CF (lowest accruals) set the slider from 100% to 80%.


This setting is different to most other settings where you normally set the slider from 0% to 20% to select the best companies.