Operating Cash Flow Ratio Calculator

Rs
Rs
Finance

The Operating Cash Flow Ratio Calculator measures how well cash generated from operations covers current liabilities. Enter operating cash flow and current liabilities to get the ratio.

Formula

Operating Cash Flow Ratio = Operating Cash Flow ÷ Current Liabilities
  • A ratio above 1.0 means operations alone can cover short-term obligations.
  • It uses actual cash flow rather than accrual earnings.

Rs 700,000 operating cash flow, Rs 1,000,000 current liabilities

Inputs
  • Operating Cash Flow: 700000 Rs
  • Current Liabilities: 1000000 Rs

700,000 ÷ 1,000,000 = 0.70, covering 70% of current liabilities from operations.

Frequently asked questions

Why use cash flow instead of profit?
Cash flow reflects real liquidity. A profitable company can still fail if it cannot generate enough cash to pay bills.