Good Operating Cash Flow Ratio

A good operating cash flow ratio typically falls within the range of 1.0 to 2.0, although this can vary by industry. A ratio of 1.0 or higher indicates that a company generates enough cash flow from its operations to cover its short-term liabilities comfortably. However, a ratio significantly above 2.0 might suggest that the company is not efficiently utilizing its cash or may have excess liquidity.