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What is the 'Operating Cash Flow Ratio'
The operating cash flow ratio is a measure of how well current liabilities are covered by the cash flow generated from a company's operations.
Formula:
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BREAKING DOWN 'Operating Cash Flow Ratio'
The operating cash flow ratio can gauge a company's liquidity in the short term. Using cash flow as opposed to income is sometimes a better indication of liquidity simply because, as we know, cash is how bills are normally paid off.
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RELATED FAQS

What are some ratios I can use the operating cash flow ratio with?
Understand the importance of a company's operating cash flow. Learn about some of the financial ratios that use the operating ... Read Answer >> 
What is the difference between the operating the operating cash flow ratio and operating ...
Find out more about the operating cash flow ratio, the operating cash flow margin, how to calculate these ratios and the ... Read Answer >> 
What does the operating cash flow ratio measure?
Learn about the operating cash flow ratio, how the ratio is calculated and what it indicates about a company. Read Answer >> 
Are taxes calculated in operating cash flow?
Learn how taxes are involved with the calculations for operating cash flow, and find out about the importance of operational ... Read Answer >> 
Why do analysts look at operating cash flow?
Learn how operating cash flow is used to determine financial health. Examine how cash flow is calculated, and what a low ... Read Answer >> 
What's the difference between free cash flow and operating cash flow?
Learn the difference between free cash flow and operating cash flow. Explore how analysts use earnings and cash flow when ... Read Answer >>