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.
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References in periodicals archive ?
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.