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Depreciation and Amortization
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Depreciation to Cash Flow =
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Cash Flow from Operations
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Explanation of Depreciation to Cash Flow:
The Depreciation to Cash Flow ratio measures how well a company can
sustain its level of cash flow and avoid market fluctuations.
Importance of Depreciation to Cash Flow:
A high, or increasing Depreciation to Cash Flow ratio indicates the
company's cash flow is more predictable and is not having to ride the highs and
lows of market conditions.
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