Cash-flow backing of earnings
How fully operating cash flow backs reported net income.
Formula
Operating cash flow ÷ net income (same period)
Served as: annual · ttm. Annual and quarterly observations are never mixed unlabeled.
Where the inputs come from
- NetCashProvidedByUsedInOperatingActivities
- NetIncomeLoss
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 periods; persistent gaps matter more than single-period ones.
When it is not served
Not meaningful when net income is near zero (the ratio explodes); shown with that caveat.
Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.
What it cannot tell you
Timing differences (working capital, deferred revenue) create honest gaps in single periods.
Questions worth asking next
- Is the gap explained by working-capital movement in the cash-flow statement?
- Does the gap persist across the multi-year series?
Research prompts, not recommendations.
See it computed from filings
Related in earnings quality and risk screens: Altman Z'' · Piotroski F-score · Beneish M-score · Sloan accruals · Receivables vs revenue · Inventory vs revenue
Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.