EV to Operating Cashflow Ratio
Calculate the enterprise value over operating cash flow ratio, a valuation ratio that measures a company’s total value (including debt and equity) relative to its operating cash flow.
The ratio is a valuation metric that helps investors assess the company’s valuation relative to its operating cash flow. This ratio provides insights into how many times the enterprise value exceeds the company’s operating cash flow, indicating the company’s ability to generate cash from its operations.
The formula is as follows:
\[\text{Enterprise Value to Operating Cash Flow Ratio} = \text{Enterprise Value} / \text{Operating Cash Flow}\]EV to Operating Cashflow Ratio in Python
get_ev_to_operating_cashflow_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_ev_to_operating_cashflow_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
ev_to_operating_cashflow_ratio = toolkit.ratios.get_ev_to_operating_cashflow_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 29.7611 | 18.2565 | 28.3904 | 33.3825 | 37.2762 |
| TSLA | 103.109 | 28.4392 | 64.8419 | 94.5442 | 107.086 |
Parameters
get_ev_to_operating_cashflow_ratio accepts the following parameters:
- show_daily (bool, optional): Whether to show daily data. Defaults to False.
- diluted (bool, optional): Whether to use diluted shares in the calculation. Defaults to True.
- rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
- growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
- lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
- trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.