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# Operating Cash Flows to Total Liabilities Ratio

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Equation / Last modified by KurtHeckman on 2019/03/15 17:36
`OCR = `

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cataustria.Operating Cash Flows to Total Liabilities Ratio

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The **Operating Cash Flow to Total Liability Ratio** calculator compute the ratio (%) of cash flow to total liability.

**INSTRUCTIONS:** Choose the currency units of choice and enter the following:

- (
**ocf**) This is the Operating Cash Flow. - (
**tl**) This is the Total Liability.

**Operational Cash-flow Ratio (OCR):** The calculator returns the ratio a percentage.

#### General Information

This coverage ratio compares a company's operating cash flow to its total debt, which, for purposes of this ratio, is defined as the sum of short-term borrowings, the current portion of long-term debt and long-term debt. This ratio provides an indication of a company's ability to cover total debt with its yearly cash flow from operations. The higher the percentage ratio, the better the company's ability to carry its total debt.

**Resource:**

**Dopson, Lea R., and David K. Hayes.***Managerial Accounting for the Hospitality Industry*. Hoboken, NJ: Wiley, 2009. Print.

This equation,

**Operating Cash Flows to Total Liabilities Ratio**, is used in 1 calculator.**Calculators**