Operating Cash Flow Sales Ratio
Calculate the operating cash flow to sales ratio, a liquidity ratio that measures the ability of a company to generate cash from its sales.
The operating cash flow to sales ratio is calculated by dividing operating cash flow by sales revenue. It indicates the proportion of sales revenue that is converted into cash from operating activities.
The formula is as follows:
\[\text{Operating Cash Flow to Sales Ratio} = \text{Cash Flow from Operations} / \text{Revenue}\]Also known as: cash flow to sales ratio.
Operating Cash Flow Sales Ratio in Python or via the MCP
Install the Finance Toolkit with:
pip install financetoolkit -U
Then call get_operating_cash_flow_sales_ratio as shown below.
from financetoolkit import Toolkit
toolkit = Toolkit(
["V", "MA", "PYPL"],
api_key="FINANCIAL_MODELING_PREP_KEY",
start_date="2021-01-01",
end_date="2025-12-31",
)
toolkit.ratios.get_operating_cash_flow_sales_ratio()
Or, after setting up the Finance Toolkit MCP, ask:
How much operating cash flow did Visa, Mastercard and PayPal generate per dollar of revenue from 2021 to 2025?
Which returns:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| MA | 0.5011 | 0.5034 | 0.4773 | 0.5247 | 0.5382 |
| PYPL | 0.2285 | 0.2112 | 0.1627 | 0.2343 | 0.1934 |
| V | 0.6317 | 0.6431 | 0.6356 | 0.5553 | 0.5765 |
Parameters
get_operating_cash_flow_sales_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 |