Operating Cash Flow to Current Liabilities

Online Calculators for Business & Investment





Operating Cash Flow to Current Liabilities

The Operating Cash Flow to Current Liabilities is an alternative to the current ratio. The current ratio is a measure of currents assets to current liabilities, but this alternative uses a direct measure of cash inflows from the ordinary course of business.

Ultimately current liabilities are paid with cash so this ratio allows us to tell if a business is generating enough cash from operations to meet these liabilities

Further, since not all current assets are convertible to cash, the Operating Cash Flow to Current Liabilities may be better test of liquidity and solvency than the current ratio

The ratio tells you how many times over the operating cash flow can meet the current liabilities.

Operating Cash Flow to Current Liabilities Calculator

The calculator asks for:
Cash Flow from Operating Activitie, you can find this in the Cash Flow Statement.
Current Liabilities, which is found in the Balance Sheet.

Cash Flow from
Operating Activities ($):

Current Liabilities:


Operating Cash Flows to Current Liabilities:




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