DSE Cash Flow Yield Calculator

Profit is an Opinion, Cash is a Fact

In financial accounting, "Profit" (EPS) can often be adjusted through non-cash items like depreciation, inventory valuation, or deferred taxes. However, Operating Cash Flow (OCF) represents the actual money entering or leaving the company's bank account from its core business.

What is Cash Flow Yield?

Cash Flow Yield is the ratio of Operating Cash Flow to the Market Capitalization of the company. It tells you how much "Hard Cash" the company generates for every Taka you invest in its shares.
Formula: Cash Flow Yield = (Operating Cash Flow / Market Cap) × 100

Why is OCF critical for DSE Investors?

In Bangladesh, we often see companies reporting record profits (High EPS) while simultaneously having negative Net Operating Cash Flow Per Share (NOCFPS). This is a major warning sign:

• Dividend Risk: Dividends are paid in cash, not paper profits. If a company has no cash flow, its dividends are at risk or are being funded by debt.
• Credit Risk: A company with negative OCF is likely struggling to collect money from its distributors or customers (high receivables).
• Sustainability: Companies with high cash flow yields (above 10-15%) are usually "Cash Cows" that can self-fund their growth without taking expensive bank loans.

Price-to-Cash-Flow (P/CF) Ratio

While the P/E ratio is popular, the **P/CF ratio** is often more reliable. A low P/CF ratio (under 10) suggests that the company is undervalued relative to the cash it produces. On the DSE, savvy investors prioritize P/CF over P/E during bear markets to find truly resilient companies.

Where to find this data?

You can find "Net Operating Cash Flow" in the **Statement of Cash Flows** section of the company's financial report. Many DSE-listed companies also report **NOCFPS** directly in their quarterly summaries.