Operating Cash Flow Ratio

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Operating cash flow ratio, abbreviated as OCFR, is the ability of a company to meet its short-term obligations.

 

Operating Cash Flow ratio Formula

\(\large{ OCFR =  \frac{ OCF }{ CL }   }\)  

Where:

\(\large{ OCFR }\) = operating cash flow ratio

\(\large{ CL }\) = current liabilities

\(\large{ OCF }\) = operating cash flow

 

Tags: Equations for Manufacturing