OCFtoProfit
Cash Flow to Profit — Sloan 1996
Earnings Quality
Quick facts
| Factor ID | OCFtoProfit |
| Display name | Cash Flow to Profit |
| Family | Predictor |
| Category | Earnings Quality |
| Direction | higher_expected_return |
| Status | supported |
| Paper | Sloan 1996 |
| Source tables | fina_indicator |
| Required fields | ocf_to_profit |
| PIT required | yes |
| Coverage | 2010-04-27 – 2026-05-15 · 556,095 rows · 81.2% of panel |
Formula
ocf_to_profit / 100
Operating cash flow divided by net profit from fina_indicator as an earnings quality measure.
China adaptation
Uses Tushare fina_indicator ocf_to_profit directly.
Direction-adjusted cumulative return
Return metrics
| Metric | Value |
|---|---|
| Months in sample | 193 |
| Monthly mean | 0.1589% |
| Monthly std | 1.9008% |
| Annualized Sharpe | 0.29 |
| t-stat (simple) | 1.16 |
| Hit rate (months > 0) | 56.5% |
| Last 12M compounded | -2.88% |
| Cumulative wealth (start = 1) | 1.312 |
Recent 12 months
| Month | L/S return | Cumulative | Names |
|---|---|---|---|
| 2025-05 | -0.50% | 1.344 | 3860 |
| 2025-06 | +1.02% | 1.358 | 3867 |
| 2025-07 | -0.18% | 1.355 | 3878 |
| 2025-08 | +0.08% | 1.357 | 3936 |
| 2025-09 | +0.25% | 1.360 | 3947 |
| 2025-10 | +0.20% | 1.363 | 3936 |
| 2025-11 | -1.93% | 1.336 | 3942 |
| 2025-12 | -0.06% | 1.336 | 3954 |
| 2026-01 | -0.17% | 1.333 | 3957 |
| 2026-02 | +0.79% | 1.344 | 3960 |
| 2026-03 | -1.60% | 1.322 | 3960 |
| 2026-04 | -0.77% | 1.312 | 3797 |
Known data issues
Can be extreme when net profit is near zero.
Notes
Inverse of accruals concept — high OCF/profit means low accruals.
See also: Earnings Quality family, Factor library, Factor returns.