Define the cash flow on total assets ratio and explain how it is used to evaluate cash flows and to assess company performance.

Cash Flow Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash flows from operations.

Total Assets

Total Assets refer to the sum of all assets owned by a company, including both current and non-current assets, indicating the total resources at a company's disposal.

Company Performance

An evaluation of a company's ability to generate earnings, revenue, and other key metrics for success and stability.