Free Cash Flow Operating Cash Flow Ratio
Calculate the free cash flow to operating cash flow ratio, a profitability ratio that measures the amount of free cash flow a company generates for every dollar of operating cash flow.
The free cash flow to operating cash flow ratio helps assess how well a company’s operating activities translate into free cash flow, which is the cash available after all expenses and investments. A higher ratio indicates that the company is generating strong free cash flow relative to its operating cash flow, which could signify efficient capital management.
The formula is as follows:
\[\text{Free Cash Flow to Operating Cash Flow Ratio} = \text{Free Cash Flow} / \text{Cash Flow from Operations}\]Also known as: FCF to OCF ratio.
Free Cash Flow Operating Cash Flow Ratio in Python
get_free_cash_flow_operating_cash_flow_ratio is part of the Ratios module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_free_cash_flow_operating_cash_flow_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
fcf_to_ocf_ratios = toolkit.ratios.get_free_cash_flow_operating_cash_flow_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 0.8935 | 0.9123 | 0.9009 | 0.9201 | 0.8859 |
| TSLA | 0.3029 | 0.5129 | 0.3287 | 0.24 | 0.4218 |
Parameters
get_free_cash_flow_operating_cash_flow_ratio accepts the following parameters:
- 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.