OCF / EBIT

Cash conversion: operating cash flow over operating profit

One of the 61 measures in Stock Scorer, under Quality — How much of the revenue is really kept — and what did it take to earn it?

How it is worked out

Operating cash flow ÷ operating income

How much of the profit on the income statement turned up as cash. Above 1.0 means more cash came in than profit was reported, usually because customers pay in advance. Not computed on a loss, where the ratio would compare two numbers of opposite sign.

How to read it

catches profit that never becomes cash; undefined on a loss

Which figures it needs

Computed from 2 figures taken from the filing:

• ocf
• operating_income

The XBRL tags behind it

These are the element names looked for in a filing, in order. The first one a company reports is the one used, and the company page names which it was — so any figure here can be checked against the filing it came from.

• NetCashProvidedByUsedInOperatingActivities
• NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
• CashFlowsFromUsedInOperatingActivities
• CashFlowsFromUsedInOperatingActivitiesContinuingOperations
• OperatingIncomeLoss
• ProfitLossFromOperatingActivities

Whether it counts

This measure is not counted by default. It can be added to Quality on the dashboard, and it then takes its share of that dimension.