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You are analyzing the cash flow efficiency of two consumer goods companies, ConsumerCo and ProductX, to assess their ability to generate cash from operations. Requirements:
You are analyzing the cash flow efficiency of two consumer goods companies, ConsumerCo and ProductX, to assess their ability to generate cash from operations.
Requirements:
- ConsumerCo generated operating cash flow of $50 million with net sales revenue of $500 million for the fiscal year 2023. ProductX achieved operating cash flow of $60 million with net sales revenue of $600 million during the same period.
- Calculate the operating cash flow margin for both companies.
- Determine which company has a higher operating cash flow margin, indicating better cash flow efficiency.
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