Free · Equity investment calculators 📈

Operating Cash & Current Liability Coverage Calculator

Compare trailing operating cash flow with current liabilities, with an optional quarterly breakdown.

  • Formula & worked example
  • Private in your browser
  • No signup
Go to tool

Calculator inputs

Loading calculator…

How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Operating cash flow of 120,000 over the trailing year divided by current liabilities of 100,000 gives coverage of 1.2 times.

Operating cash flow ratio = trailing-period operating cash flow ÷ current liabilities

Worked example

Enter these known values and leave the other values blank.

Current liabilities
100000 USD
Operating cash flow TTM
120000 USD
Operating cash flow ratio
1.2

Assumptions and limitations

  • Use a positive current-liability balance and operating cash flow for the stated period. Trailing twelve-month cash flow can be entered directly or summed from four quarters.
  • A period cash-flow amount and a balance-sheet liability amount have different timing. The ratio alone does not establish solvency or predict payment dates.

Common questions

Can I calculate trailing cash flow from quarters?

Yes. Enter four consecutive quarterly operating cash-flow amounts using the same accounting scope. Their sum supplies the trailing figure. Avoid mixing standalone quarterly figures with year-to-date cumulative cash flow.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

Explore equity investment calculators 📈 or browse all finance calculators.