Skip to main content
Cash and conversion

Cash conversion of earnings

How fully operating cash flow backs reported net income for the same period - the work line behind the cash-flow-backing screen.

Formula

Operating cash flow ÷ net income (identical period end)

Served as: annual · derived. Annual and quarterly observations are never mixed unlabeled.

Where the inputs come from

  • NetCashProvidedByUsedInOperatingActivities
  • NetIncomeLoss (same-end pairing)

Listed highest priority first. Every served figure carries its filing, fiscal period and accession; open any value on the financials page to see them.

How to compare it honestly

Read across several years; a persistently low ratio matters more than one year's timing gap.

When it is not served

Not computed when net income is untagged for the end or not positive - a share of a non-positive base misleads.

Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.

What it cannot tell you

Working-capital timing creates honest single-year gaps; this is the same identity the eq_gap screen counts, shown as work.

Questions worth asking next

  • Does the multi-year eq-gap window agree with the latest year's ratio?
  • Which working-capital lines drove the gap per the cash-flow statement?

Research prompts, not recommendations.

See it computed from filings

Related in cash and conversion: Free cash flow · FCF conversion · Cash returned · Total payout / FCF · Dividend payout

Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.

Educational content only. Not financial advice. TrendNalysis provides educational and informational financial analysis built from public SEC filings and economic data (FRED, BLS). It is not financial, investment, tax, or legal advice and is not a recommendation to buy or sell any security. Market pricing is not currently included. Past performance does not guarantee future results. Always do your own research and consult a licensed financial professional before investing.