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 ?
Operating Cash Flow Ratios Measure a Retail Firm's "ability to pay", Journal of Applied Business Research, vol.
The ability of AM Corporation to cover its current liabilities is shown in its operating cash flow ratios (Table 2).
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.
Operating cash flow ratios vary radically, depending on the industry.