Operating cash flow per share
factor.formula
Operating cash flow per share calculation formula:
Average total share capital calculation formula:
In the formula, the numerator is the net cash flow from operating activities in the last 12 months (Trailing Twelve Months, TTM), which represents the net amount of cash actually inflow from daily operating activities minus cash outflow in the past year. The denominator is the average total equity, which refers to the average value of the company's common stock outstanding during the calculation period. The average total equity is usually approximated by the average of the beginning and ending equity. These two parameters together form the basis for calculating operating cash flow per share.
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Refers to the net amount of cash inflow from the company's operating activities minus cash outflow in the past 12 months, reflecting the company's main business hematopoietic ability. This value is usually taken from the cash flow statement of the company's financial report.
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It refers to the average total number of common shares issued by a company during the calculation period. It is a proxy for the size of a company's capital and is used to measure the cash flow per share.
factor.explanation
Operating cash flow per share (OCFPS) is an important per-share indicator that measures the net cash flow generated by operating activities for each share of a company's stock. Compared with earnings per share (EPS), OCFPS can better reflect the company's true profit quality because it focuses on actual cash inflows rather than book profits. A healthy OCFPS value indicates that the company has sufficient cash inflows to support its operations, investments, and dividends. A higher OCFPS usually means that the company has stronger profitability and financial stability. In quantitative investment, this factor is often used to evaluate a company's profit quality and financial health, as well as as an input to stock selection strategies.