Cash flow ratios in financial statements analysis: An application for stone and land based industry sector

Interest in Cash flow statement, being one of the most important of the financialstatements, have increased in the world and our country, as it is an importantinformation source. International Financial Reporting Standards (UFRS) has madepublishing cash flow statement mandatory, along with balance and income statement. Inour country, Turkey Accounting Standards Board has published TMS 7 that iscompatible with UFRS. TMS 7 requires that cash flow statement be documented in anaction-based format. There are some studies discussing the effectiveness of action basedcash flow statements for the use of analysis.Cash flow ratios have been used more frequently in financial performanceassessment after UFRS made cash flow statement publishing mandatory. Cash flowratio analysis requires the cash flow ratios to be calculated and interpreted. After theanalysis, the action results of the company is assessed based on financial performance.In this study, the cash flow ratio analysis of stocks of stone and land basedindustrial companies on ISE between 2006 and 2008. The purpose of this study is toassess the various dimensions of the companies performances using cash flow ratios.