Operating Cash Flow Ratio financial definition of Operating Cash Flow Ratio. Operating Cash Flow Ratio finance term by the Free Online Dictionary.

Operating Cash Flow Ratio

A ratio of a company's operating cash flow to current liabilities. Operating cash flow is a measure of how much cash a company has on hand, while current liabilities show expenses it must pay in the near future. The operating cash flow ratio thus shows a company's ability to meet these liabilities without having to sell assets or take any similar actions.

Operating Cash Flow (OCF) Ratio

What Does Operating Cash Flow (OCF) Ratio Mean?

A measure of how well current liabilities are covered by the cash flow generated from a company's operations. It is calculated as shown here:

Investopedia explains Operating Cash Flow (OCF) Ratio

The operating cash flow ratio helps gauge a company's liquidity in the short term. Using cash flow as opposed to income is sometimes a better indication of liquidity, because cash is how bills are normally paid off.

Related Terms:
• Current Liabilities
• Income Statement
• Liquidity Ratios
• Operating Cash Flow—OCF
• Quick Ratio

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Free Cash Flow Liquidity Ratios	Operating cash flow ratios vary radically, depending on the industry. The power of cash flow ratios by Yamamura, Jeanne H. / Journal of Accountancy In addition, the group's liquidity is very strong, with underwriting and operating cash flow ratios averaging 114% and 120% in the past five years, respectively, which is significantly better than the industry. Standard & Poor's Announces: Progressive Corp. 'A+' Ratings Affirmed; ... by Business Wire Borrowings under the revolving facility are conditioned upon YBI having on hand cash and cash equivalents of at least $50 million, and having a senior secured debt to operating cash flow ratio (as defined in the facility) of not more than 1. Young Broadcasting Announces Amendment of Senior Credit Facility by Business Wire	Operacion a ultimo dia del mes Operacion con divisas a plazo Operacion contraria Operacion de canje Operacion de cierre Operacion de contado Operacion de rescate Operacion en bloque Operacion para cancelar Operacion que abre una posicion nueva Operacion sin riesgo Operaciones anonimas Operaciones basadas en informacion Operaciones de mercado abierto Operaciones poscierre Operador Operador de inversores institucionales Operador de la punta contraria Operador de valores Operador especializado en bonos operating and easement agreement Operating Assets operating budget operating capital Operating Cash Flow Operating Cash Flow Ratio Operating Company Operating Cycle Operating Expense operating expense escalation operating expense ratio operating expenses Operating Exposure Operating in the Red operating income operating lease operating leverage Operating Loss Operating Margin Operating Profit Operating Profit Margin Operating Rate Operating Ratio Operating Ratios Operating Revenue Operating Risk Operating Statement operating statements Operating Unit operation de sauvetage Operation financiere	Operating Area Operating Assets Operating Assets Operating Assets Operating Assets Operating Authorization Operating Balancing Agreement Operating Basis Accident operating budget operating budget operating budget Operating Budget Account Number Operating Budget Authority Operating Budget Authority/Accounting Document Operating Budget Committee Operating Budget Ledger Operating Budget Management System Operating Budget Review Committee Operating by the Guidelines operating capability Operating Capability Maintenance operating capital operating capital operating capital operating capital Operating Capital Outlay Operating cash flow Operating cash flow Operating cash flow Operating Cash Flow Demand Operating Cash Flow Ratio Operating Cash Flow Ratios Operating Cash Flows Operating Characteristic Operating Characteristic Curve Operating Characteristic Curve Operating Committee Operating Committee Meeting Operating Companies Operating Companies Operating Companies Income operating company operating company operating company Operating Company Contribution Operating Company Number Operating Condition Operating Conditions Register operating cost operating cost operating cost operating cost operating cost Operating Cost Authority Operating Cost Board Budget Operating Costs Operating Costs Operating Costs Operating Costs of Capital Operating Criteria and Procedures Operating Curve

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Free Cash Flow
Liquidity Ratios

Operating cash flow ratios vary radically, depending on the industry.

The power of cash flow ratios by Yamamura, Jeanne H. / Journal of Accountancy

In addition, the group's liquidity is very strong, with underwriting and operating cash flow ratios averaging 114% and 120% in the past five years, respectively, which is significantly better than the industry.

Standard & Poor's Announces: Progressive Corp. 'A+' Ratings Affirmed; ... by Business Wire

Borrowings under the revolving facility are conditioned upon YBI having on hand cash and cash equivalents of at least $50 million, and having a senior secured debt to operating cash flow ratio (as defined in the facility) of not more than 1.

Young Broadcasting Announces Amendment of Senior Credit Facility by Business Wire

Operacion a ultimo dia del mes

Operacion con divisas a plazo

Operacion para cancelar

Operacion que abre una posicion nueva

Operacion sin riesgo