The formula to calculate the Operating Cash Flow to Current Liabilities Ratio is:
OCFratio=OCFTTMCL
Where:
The Operating Cash Flow to Current Liabilities Ratio measures a company's ability to cover its short-term obligations with the cash flow generated from its operations over the past twelve months.
Let's assume the following:
To calculate the OCF TTM:
OCFTTM=41.6+0.5+49.3+128.7=220.1million
Then, the ratio is calculated as follows:
OCFratio=220.1178≈1.236
Therefore, the Operating Cash Flow to Current Liabilities Ratio is approximately 1.236.