Ratio of operating cash flow to net income. Values > 1 indicate high earnings quality backed by real cash.
Formula: CCR = Operating Cash Flow / Net Income (null when net income ≤ 0)
How to read it: > 1.0 = cash-backed earnings (strong quality) · 0.8–1.0 = acceptable · < 0.8 warrants scrutiny. A consistently low CCR is an early forensic accounting warning sign.
Used by forensic accountants and short sellers to detect earnings manipulation. Companies with consistently low CCR (income >> cash flow) often face eventual earnings restatements.