Cash Flow Raio Calculator
**This is a basic calculator and does not accept commas. When entering values, just enter the numbers.
Cash Flow Ratio Formula
Cash Flow Ratio =
Cash Flows from Operations / Current Liabilities
** Cash flows from operations is found on the statement of cash flows and current liabilities is found on the balance sheet.
Cash Flows from Operations / Current Liabilities
What is the Cash Flow Ratio?
The cash flow ratio, also referred to as the operating cash flow ratio, is an accounting equation that measures short-term liquidity. In short, it is a measure of how much money a business is earning from operations in comparison to current liabilities. When this ratio is greater than 1 it means the company can cover short-term liabilities, with additional earnings. If the ratio is less than 1 it means the business is not generating enough cash from operations to cover short-term liabilities.