Operating Cash Flow Ratio

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.
References in periodicals archive ?
Financial covenants in the TELUS International facility include two quarter-end ratio tests: a net debt to operating cash flow ratio test, which must not exceed 3.25x, and an operating cash flow to debt service ratio must not be less than 1.5x.
The cash flow ratios are: Operating cash flow ratio (OCF/CL); Cash ratio (Cash/CL); Cash debt Coverage ratio (OCF- Div/total debt); and Cash interest coverage (OCF+ int.
Operating Cash Flow Ratio: cash flow from operations / current liabilities (Figelwicz and Zeller, 1991; Mills, et al., 1998; Schmidgall, et al., 1993).
The trend of the operating cash flow ratio is stable.
This ratio is a more intense test than operating cash flow ratio of the ability of the company to pay their debts.
Operating Cash Flow Ratios Measure a Retail Firm's "ability to pay", Journal of Applied Business Research, vol.
Operating cash flow ratios vary radically, depending on the industry.