Operating cash flow margin (OCF mgn)
How much of each unit of revenue arrives as cash from operations.
Compared with the net margin it shows whether reported profit is turning into money.
How it is computed here
Operating cash flow / revenue x 100
Measured over the latest complete fiscal year, as filed. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Before capital spending, so it overstates what a capital-hungry business can distribute.
- Working-capital swings move it year to year without any change in trading.
Questions
How is operating cash flow margin calculated?
Operating cash flow / revenue x 100. Measured over the latest complete fiscal year, as filed.
What does operating cash flow margin tell a value investor?
Compared with the net margin it shows whether reported profit is turning into money.
When does operating cash flow margin mislead?
Before capital spending, so it overstates what a capital-hungry business can distribute. Working-capital swings move it year to year without any change in trading.