Operating Cash Flow Ratio Calculator

About this calculator

The operating cash flow ratio divides cash generated from core operations by current liabilities: OCF Ratio = Operating Cash Flow ÷ Current Liabilities. Unlike the current ratio, which uses accrual-basis assets that may include slow-paying receivables or hard-to-sell inventory, this ratio only counts cash the business has actually collected.

Credit analysts consider it one of the harder liquidity ratios to manipulate through accounting choices, since it's drawn from the cash flow statement rather than the balance sheet, and a company can report solid net income while still generating little real cash. A ratio below 1.0 is a warning sign that operations alone aren't producing enough cash to cover bills coming due within the year.