PMTAT consists of three parts:
PM (profit rate), that is, DuPont cash conversion cycle, indicates the time from purchasing raw materials to recovering sales funds.
TAT (Total Assets Turnover Rate), namely DuPont cash turnover rate, indicates the quantity and quality of cash flow generated by business activities.
CR (cash ratio), that is, DuPont cash ratio, indicates the solvency and cash management ability of an enterprise.
By analyzing the cash flow of enterprises, PMTAT can help enterprises to better grasp the fund management and provide reference for decision-making.