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FCF Quality Checker

Check if profits are backed by cash

Evaluate earnings quality and cash backing by comparing Net Income, Operating Cash Flow, Free Cash Flow, and CapEx.

Core Metrics:
OCF/NI ≥ 100%FCF/NI ≥ 80%FCF/OCF ≥ 80%CapEx/OCF ≤ 40%
Input Parameters
Enter company's four cash flow metrics (in millions or ten thousands)
M
M
M
M
Quality Analysis Results
Comprehensive evaluation based on four key ratios
Cash Flow Quality Score
81.4/100
High Quality
OCF / Net Income
Pass
110.0%
Measures cash backing for profits, should be ≥ 100%
FCF / Net Income
Pass
80.0%
Measures conversion of profits to free cash flow, should be ≥ 80%
FCF / OCF
Warning
72.7%
Measures quality of operating cash flow, should be ≥ 80%
CapEx / OCF
Pass
27.3%
Measures CapEx占用OCF的比例, should be ≤ 40%
Cash Flow Summary
Net Income
100 M
OCF
110 M
CapEx
30 M
FCF
80 M
✓ Excellent Earnings Quality

Company's OCF is sufficient to cover Net Income effectively, CapEx ratio is reasonable, and FCF is abundant. This is typical of high-quality enterprises.

Important Note

FCF quality analysis should be combined with industry characteristics and development stage for comprehensive judgment. Capital-intensive industries (e.g., manufacturing, infrastructure) typically have higher CapEx/OCF, while asset-light industries (e.g., software, services) are lower. Mature enterprises usually have more stable cash flows than growth companies. Additionally, observe trends over multiple years rather than just single-year data.

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