Operating Cash Flow Ratio
A measure of how well current liabilities are covered by the cash flow generated from a company's operations.
Formula:
Investopedia Says:
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. Related Terms:
Cash Flow
Current Liabilities
Income
Liquidity
Liquidity Ratios
Operating Cash Flow - OCF |