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Cash conversion
Operating cash flow as a share of net income, how that differs from the cash conversion cycle, and figures from Apple, Walmart and Intel.
The short answer
Cash conversion, on this page, means operating cash flow divided by net income: how much of the year's profit showed up as cash from operations. It is not the cash conversion cycle, which measures days in receivables and inventory minus days in payables.
The ratio
Net income is an accrual figure. Operating cash flow starts from that figure (or from a loss) and adjusts for non-cash items, such as depreciation, and for changes in working capital. A ratio above 100% means operations brought in more cash than the company reported as profit; a ratio below 100% means the opposite. Intel's 10-K for 2025 states the starting point in one sentence: operating cash flows consist of net income (loss) adjusted for certain non-cash items and changes in certain assets and liabilities. Apple generated $145.1B of operating cash flow in fiscal 2026 on net income of $132.2B, a ratio of 110%. Walmart's ratio for fiscal 2026 was 190%: operating cash flow of $41.6B and net income of $21.9B.
Source: Apple 10-K for fiscal 2026, filed Nov 3, 2026 · Walmart 10-K for fiscal 2026, filed Mar 13, 2026 · Intel 10-K for fiscal 2025, filed Jan 23, 2026
Not the cash conversion cycle
The cash conversion cycle is a days measure: days sales outstanding plus days inventory outstanding, minus days payable. It answers a different question (how long cash is tied up in the operating cycle). This page's ratio is a cash-versus-profit comparison for one year. The two can move in the same direction, but they are not substitutes.
How to read a high or low figure
- A year with a loss can still produce cash. Intel reported a net loss in 2025 and still showed cash provided by operations, because the adjustments from non-cash items and working capital can more than offset a loss. The ratio is omitted from the table in that case.
- A very high ratio is a prompt to read the adjustments, not a conclusion. Depreciation, a drop in receivables or inventory, or a rise in payables can all lift operating cash flow relative to profit. One-time items can do the same.
- A ratio below 100% can appear in a year of inventory build, slower collections, or cash taxes and interest that exceed the related expense. It can also appear when profit includes large non-cash gains.
Every company
Latest fiscal year from each company's 10-K. Companies with a net loss, banks (whose cash flow statements are hard to compare on this cut), or missing figures are omitted, because a negative denominator flips the ratio's meaning. Sorted from highest ratio to lowest.
Common questions
What is cash conversion on this page?
Operating cash flow divided by net income for the same year. It is a simple comparison of cash from operations with reported profit.
Is this the cash conversion cycle?
No. The cash conversion cycle counts days in receivables and inventory, minus days in payables. This page is a ratio of two dollar amounts.
What does a ratio above 100% mean?
Operating cash flow was larger than net income that year. Apple's latest year is an example: cash from operations exceeded profit. The reasons sit in the adjustments on the cash flow statement.
Can a company with a loss have cash from operations?
Yes. Intel's 2025 10-K describes operating cash flows as net income or loss adjusted for non-cash items and changes in assets and liabilities, and it reported cash provided by operations in a year it reported a loss.
Where are the figures?
Net income is at the bottom of the income statement. Operating cash flow is the subtotal of the operating section of the cash flow statement.
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) and SpaceX in a long-term retirement account. The editor holds no position in any other company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 10, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.