Operating cash flow ratio

Operating cash flow ratio


Operating cash flow ratio (cash flow from operations ratio) shows how much the company earns from its’ core activities per one dollar of current liabilities (short term debts). Data to calculate this ratio is collected from balance sheet and cash flow statement.

Norms and limitations

The higher value of the ratio indicates a better ability of a company to fulfill its’ current liabilities.

It is recommended to compare this ratio to those of the companies, working within the same industry.

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