أبحاث إقتصادية معاصرة
Volume 9, Numéro 1, Pages 209-225
2026-04-23
The Coefficient Of Variation (cv) As A Descriptive Measure Of Relative Dispersion In Cash Flows: A Comparative Analysis Of Cash Flow Stability In Apple And Microsoft (2015–2025)
Authors : Ayachi Lakhdar . Ayachi Abdellah .
Abstract
This study investigates the patterns of cash flow variability and stability in Apple and Microsoft over the period 2015–2025, with the aim of providing a more accurate interpretation of financial dynamics beyond absolute cash flow magnitudes. The analysis is based on a descriptive and quantitative approach, using operating, net, and free cash flow data extracted from the companies’ annual financial statements. The Coefficient of Variation (CV) is employed as a descriptive statistical measure to assess relative dispersion in cash flows and to enable comparison between firms of different sizes. However, the study explicitly recognizes the methodological limitations of CV, as it captures total variability without distinguishing between positive and negative deviations and does not provide a direct probabilistic measure of financial risk. To address this limitation, the analysis is complemented by the concept of Cash-Flow at Risk (CFaR), which provides a downside-oriented probabilistic perspective on potential declines in cash flows. This combined approach allows for a clearer distinction between volatility and risk and enhances the robustness of the analytical framework. The findings indicate that Apple exhibits relatively lower dispersion in operating and free cash flows compared to Microsoft over the full period, suggesting higher stability in cash generation. In contrast, Microsoft shows greater variability, particularly in net cash flows, largely influenced by financing activities and structural shifts over time. These results, however, remain descriptive in nature and should not be interpreted as definitive measures of financial risk without considering probabilistic and contextual factors. Accordingly, the study concludes that the Coefficient of Variation serves as a useful preliminary indicator of relative cash flow variability, but its interpretation must be carefully contextualized and supported by additional probabilistic measures when assessing financial risk.
Keywords
cash flows ; financial risk ; coefficient of variation ; liquidity stability ; relative volatility
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