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Operating Cash Flow to Current Liabilities Ratio Calculator











Formula

The formula to calculate the Operating Cash Flow to Current Liabilities Ratio is:

OCFratio=OCFTTMCL

Where:

Description

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.

Example Calculation

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.