Ratios & Quality

Short-Term OCF Coverage

Expresses cash generated by ordinary operations as a percentage of another economic base. This allows intensity, efficiency or coverage to be compared without company size dominating the reading.

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Short-Term OCF Coverage

shortTermOperatingCashFlowCoverageRatio · Ratios & Quality

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Definition: Expresses cash generated by ordinary operations as a percentage of another economic base. This allows intensity, efficiency or coverage to be compared without company size dominating the reading.
Calculation: Operating cash flow / short-term debt.
Uses: Useful for comparing similar models and tracking efficiency, pricing power, financial risk or taxation. It can mislead across sectors or with one-offs, restructuring or accounting-policy changes. Complement with growth, FCF, ROIC, asset turnover and notes.