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Accruals vs Assets (TATA)
The gap between reported profit and the cash actually generated, measured against the size of the business. It answers a blunt question: did the profit show up in the bank?
Example
A negative figure means cash came in ahead of reported profit — healthy. A large positive figure means profit is being reported well before any cash arrives.
Worth knowing
The most reliable of these indices on Indian accounts, but still one reading among several.