Operating Cash Flow Ratio

Dictionary Says

Definition of 'Operating Cash Flow Ratio'

A measure of how well current liabilities are covered by the cash flow generated from a company's operations.

Formula:
Operating Cash Flow Ratio
Investopedia Says

Investopedia explains '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 Definitions

  1. Current Liabilities

    A company's ...
  2. Income

    Economic wealth ...
  3. Liquidity

    1. The degree to ...
  4. Cash Flow

    1. A revenue or ...
  5. Operating Cash Flow - OCF

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  6. Liquidity Ratios

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  7. Income From Operations - IFO

    The profit ...
  8. Operating Income

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  9. Earnings Before Interest & Tax - EBIT

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  10. Standalone Profit

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