Operating Cash Flow Ratio

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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 ?
The ability of AM Corporation to cover its current liabilities is shown in its operating cash flow ratios (Table 2).
The trend of the operating cash flow ratio is stable.
Low liquidity: Liquidity is low based on underwriting and operating cash flow ratios below 100% for year-end 2000 and the nine months ended Sept.
Operating cash flow ratios vary radically, depending on the industry.
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.
Despite catastrophe payments in the last three years, the underwriting and operating cash flow ratios for the property/casualty companies have been positive at 104% and 114% for 1997 and averaging 109% and 118% over the past five years, respectively.
Borrowings are to be based on multiples of operating cash flow and contain covenants requiring maintenance of certain subscriber levels and operating cash flow ratios by its subsidiaries.
FRC's investments and liquidity are viewed as strong because of a conservative investment strategy, good asset allocation, and strong underwriting and operating cash flow ratios, which have averaged 119.
30, 2000, lower premium writings were offset by high claims activity, as underwriting and operating cash flow ratios were 90.
Except for 1999, underwriting and operating cash flow ratios have been consistently strong over the past five years, averaging 103.
Since 1994, ZRNA's underwriting and operating cash flow ratios have steadily declined because of increasing loss payments, restructuring efforts, and a changing business mix.