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J&J Snack Foods Corp. Message Board

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  • x6unsound x6unsound Jan 27, 2011 9:13 PM Flag

    JJSF and debt

    Ah hah, I think I get it now! I suspected as much before, but then I got confused because I read about how you're supposed to look for an operating cash flow ratio ( operating cash flow / current liabilities ) greater than 1, otherwise the company may have trouble paying its bills. According to the way cash flow is calculated, the operating cash flow ratio shouldn't matter because you've already taken into account the cost of paying your accounts payable (through net income) before coming up with a cash flow figure, right?

 
JJSF
105.79+0.04(+0.04%)May 27 4:00 PMEDT