Operating Cash Flow Ratio
Calculate the operating cash flow ratio, a liquidity ratio that measures a company’s ability to pay off its current liabilities with its operating cash flow.
The operating cash flow ratio is calculated by dividing operating cash flow by current liabilities. It indicates whether a company’s operating cash flow is sufficient to cover its short-term obligations.
The formula is as follows:
\[\text{Operating Cash Flow Ratio} = \text{Cash Flow from Operations} / \text{Current Liabilities}\]Also known as: OCF ratio, cash liquidity.
Operating Cash Flow Ratio in Python
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_operating_cash_flow_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")
operating_cash_flow_ratios = toolkit.ratios.get_operating_cash_flow_ratio()
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 0.8291 | 0.7933 | 0.7607 | 0.6704 | 0.6731 |
| TSLA | 0.5835 | 0.5513 | 0.4611 | 0.5178 | 0.465 |
Parameters
The function 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.