CFO to PAT is a good way to judge quality of earnings. How much of the accounting profit is converted to cashflows shows how well the working capital is managed.
For FMCG large caps, generally CFO/PAT is 100% + due to negative working capital cycle.
For companies like Dhanuka where these cycles are more stretched, a CFO/PAT of 80% + on a 5 yr rolling CAGR basis would be considered impressive
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