How much of the accounting profit actually arrives as real, freely usable cash. 85% means: $100 of reported profit becomes $85 in the bank.
Rule of thumb:
MoatLens tip: A simple maxim: profit is opinion, cash is fact. This ratio measures how much opinion sits inside the profit. Capital-intensive industries such as utilities or heavy manufacturing run structurally lower — so compare only within an industry. What matters is the trend: a ratio falling year after year deserves an explanation.
In MoatLens this explanation sits right next to the number — one tap away. And you see the ten-year trend instead of a single value.
