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  3. Analyzing Financial Statements in Python

Exercise

Compute cash flow statement ratios

In this exercise, you'll compute the operating cash flow ratio and cash flow to net income ratio.

Recall that the operating cash flow ratio tells us how many times a company can pay off its short-term obligations from the cash it generates from the core of its business.

The cash flow to net income ratio gives us an idea of the proportion of cash flows earned from operating activities.

The pandas DataFrame merged_dat has already been loaded for you. It contains information from the cash flow statement, income statement, and balance sheet. pandas has been loaded as pd.

Instructions 1/3

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  • Check the columns of merged_dat to determine which columns you'll need to calculate the operating cash flow ratio and cash flow to net income ratio.