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.

No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the Free Cash Flow Operating Cash Flow Ratio for you. Just ask in plain English.

Calculate the Free Cash Flow Operating Cash Flow Ratio in Python

The Free Cash Flow Operating Cash Flow Ratio is available in 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.
Return on Equity (RoE) Return on Invested Capital (RoIC) Income Quality Ratio Return on Tangible Assets (RoTA) Return on Capital Employed (RoCE) Net Income per EBT Tax Burden Ratio EBT to EBIT EBIT to Revenue Cash Tax Rate Tax Rate Divergence EBITDA Margin

The Ratios module page introduces the module, and the sidebar lists all of its functions.

Share