FCF to OCF Ratio

FCF to OCF Ratio Calculation







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FCF to OCF ratio calculator is a finance tool to calculate the ratio of free cash flow (FCF) to operating cash flow (OCF) of a company. It is an operating performance indicator to show the investors about the quality of investments of a business, in other words, how much free cash flow is being generated for every part of investments. Generally, a higher or lesser ratio indicates that the company is not investing more on capital expenditure or investing more on capital expenditure for its growth.

Formula
FCF to OCF Ratio = Free Cash Flow/Operating Cash Flow