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 or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_free_cash_flow_operating_cash_flow_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["AMZN", "META", "GOOGL", "MSFT"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.ratios.get_free_cash_flow_operating_cash_flow_ratio()
Or, after setting up the Finance Toolkit MCP, ask:
How much of their operating cash flow did Amazon, Meta, Alphabet and Microsoft keep as free cash flow after capital expenditure from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AMZN | -0.3179 | -0.3613 | 0.3793 | 0.2837 | 0.0552 |
| GOOGL | 0.7312 | 0.6559 | 0.683 | 0.5807 | 0.4448 |
| META | 0.6781 | 0.3773 | 0.6166 | 0.5921 | 0.3982 |
| MSFT | 0.7313 | 0.7317 | 0.6791 | 0.6248 | 0.5259 |
Parameters
get_free_cash_flow_operating_cash_flow_ratio accepts the following parameters.
| Parameter | Type | Description | Example |
|---|---|---|---|
rounding | int | None | The number of decimals to round the results to. Defaults to None, which uses the rounding of the Toolkit (4 unless set otherwise). | 2 |
growth | bool | Whether to calculate the growth of the ratios. Defaults to False. | True |
lag | int | list[int] | The lag to use for the growth calculation. Defaults to 1. | 4 |
compound | bool | Whether the growth is the compound annual growth rate over the lag (e.g. lag=5 for the five-year CAGR) instead of the total change. Defaults to False. | False |
standardize | bool | Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False. | True |
trailing | int | The number of periods to sum flows (income and cash flow statement items) over, with balance sheet items averaged over the same number of period ends. E.g. 4 with quarterly data gives the trailing twelve months (TTM) and 3 with annual data a three-year cumulative figure. Defaults to None, which uses single-period flows (per quarter and not annualized with quarterly data). | 4 |