How this calculator works
Compare operating cash generated over a year with current liabilities at the measurement date. Enter trailing twelve-month operating cash flow directly or add four standalone quarterly amounts. Negative operating cash flow produces a negative ratio. This compares a flow with a balance, so it does not schedule actual debt payments.
Formula
Operating cash flow ratio = trailing twelve-month cash flow from operating activities / current liabilities. TTM cash flow = Q1 + Q2 + Q3 + Q4.
Worked example
$300,000 annual operating cash flow over $200,000 current liabilities gives 1.5 times coverage. Quarterly amounts of $20,000, -$10,000, $30,000 and $40,000 total $80,000; against $100,000 liabilities, coverage is 0.8.
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Frequently asked questions
Can I add quarterly reports directly?
Only if they show separate quarter amounts. Many cash-flow statements report year-to-date totals, which would be double counted if added.
Does a ratio above 1 guarantee liquidity?
No. Cash timing, capital spending, financing maturities and access to credit also matter.
Which liabilities should I use?
Use current liabilities at the selected balance-sheet date. Keep that convention consistent across comparisons.