IntegrityInv TO#83
Cash to Total Assets expresses the reliability of reported earnings versus underlying cash flow.
By Javier Sanz, Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz
Formula
Cost of Goods Sold / Average Inventory
Description
Measures how many times a company sells and replaces its inventory during a period. Higher turnover means inventory moves quickly, reducing storage costs, obsolescence risk, and working capital needs. It is the inverse of DIO expressed as a ratio.
Interpretation
Above 6 is generally efficient. Grocery and retail businesses often exceed 12. Very low inventory turnover (below 3) may indicate excess stock or demand problems. Compare within industry for meaningful benchmarks.
Related metrics: Debt-to-Equity Ratio (D/E). (Updated 2026)
Further Reading
- SEC EDGAR primary filings on Cash to Total Assets- Primary source filings used to calculate Cash to Total Assets.
FAQ
How is Cash to Total Assets calculated?+
Cash to Total Assets uses the formula: Cost of Goods Sold / Average Inventory. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using SEC EDGAR 10-K cash-flow reconciliation + footnote disclosures.
What is a good Cash to Total Assets value by sector?+
There is no single 'good' value for Cash to Total Assets — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Cash to Total Assets on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Cash to Total Assets?+
James Chanos, Carson Block, forensic-accounting analysts cite Cash to Total Assets as a key input to to detect earnings manipulation and accruals inflation. The academic anchor is Beneish (1999) and Sloan (1996) accruals research. ValueMarkers weights this within the Integrity pillar of the VMCI score (15% of total).
What are the limitations of Cash to Total Assets?+
Cash to Total Assets can mislead in false positives in fast-growing or restructuring companies. Pair Cash to Total Assets with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live Cash to Total Assets data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Cash to Total Assets data, sector percentiles, and the VMCI composite score that integrates Cash to Total Assets with 119 other indicators across 100,000+ stocks. The free /screener exposes Cash to Total Assets as a filterable column.
Related Integrity Indicators
Debt-to-Equity Ratio (D/E)OCF/Debt
Debt-to-Equity Ratio expresses the reliability of reported earnings versus underlying cash flow.
Debt-to-Assets RatioFCF Conv
Debt-to-Assets Ratio measures the reliability of reported earnings versus underlying cash flow.
Net Debt to EBITDA (Net Debt/EBITDA)Accrual
Net Debt to EBITDA expresses the reliability of reported earnings versus underlying cash flow.
Current RatioCapEx/Rev
Current Ratio measures the reliability of reported earnings versus underlying cash flow.
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