Earnings Quality

Operating Cash Flow to Net Profit: Why Only 23 of Every 100 Units of Shatran's FY1404 Profit Turned Into Cash (Wednesday, 5 August 2026)

A company can report a spectacular profit jump and have converted almost none of it into cash. The test is the ratio of operating cash flow to net profit. In the Tehran Oil Refining (Shatran) case Sahmino published on 14 July 2026, FY1404 gross profit rose 335% to 818 trillion tomans, yet operating cash flow came in at 187 trillion tomans against net profit of 799 trillion: a cash conversion ratio of 23%. This report turns that one case study into a repeatable tool for any ticker.