Operating Cash Flow to Current Liabilities

Operating Cash Flow to Current Liabilities is a measure of how well current liabilities are covered by the cash flow generated from operational activities. This metric provides a useful indicator of a business’s liquidity in the short-term. Using cash flow rather than profit provides a better indication of liquidity because cash is the means by which short-term obligations are normally paid. For this period, the cash ratio was -4.23:1, down from -0.86:1 last period and below the minimum target of 1:1.