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:

Also known as: OCF ratio, cash liquidity.

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Calculate the Operating Cash Flow Ratio in Python

The 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_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:

Parameters

get_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.

Related Liquidity Ratios

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