Definition:

1-year Operating Cash Flow per Share Growth Rate measures the percentage change in a company's operating cash flow per share over a one-year period. It indicates how effectively a company is generating cash from its operations relative to its shares outstanding.

Formula:

((Operating Cash Flow per Share at End of Year - Operating Cash Flow per Share at Start of Year) / Operating Cash Flow per Share at Start of Year) * 100

How to use the metric:

This metric is used by investors and analysts to assess a company's ability to generate cash flow from its core operations on a per-share basis. A positive growth rate suggests improving operational efficiency and financial health, while a negative rate may indicate potential issues.

Limitations:

The metric does not account for changes in capital structure, such as share buybacks or issuance, which can affect the per-share calculation. It also does not consider external factors like economic conditions that might impact cash flow.

Applies to:

This metric is particularly useful in industries with stable cash flows and predictable operations, such as utilities, consumer staples, and telecommunications.

Doesn't apply to:

Industries with volatile cash flows, such as technology startups or mining, may not find this metric as useful due to the inherent unpredictability in cash generation.

Summary:

The 1-year Operating Cash Flow per Share Growth Rate is a valuable tool for evaluating a company's operational cash generation efficiency on a per-share basis over a year. While insightful, it should be used in conjunction with other financial metrics to provide a comprehensive view of a company's financial health.