Xero Ltd (XRO) — Cash Flow Quality Index

Latest as of September 2025: 3.80x

Xero Ltd (XRO) has a Cash Flow Quality Index of 3.80x as of September 2025. Operating cash flow of AU$530.43 Million exceeds net income of AU$139.69 Million, indicating high earnings quality where cash backs reported profits. Explore debt repayment capacity of Xero Ltd to assess how comfortably operating cash covers total debt obligations.

Cash Flow Quality Index

3.80x
Operating CF / Net Income

Operating Cash Flow

AU$530.43 Million
AUD

Net Income

AU$139.69 Million
AUD

Data as of

Sep 2025
Most recent filing

Xero Ltd Cash Flow Quality Index (2020–2025)

Historical Cash Flow Quality Index for Xero Ltd across 4 annual periods. Values consistently above 1.0x indicate high-quality earnings. For the full cash flow conversion analysis, see Xero Ltd (XRO) cash conversion ratio.

Annual Cash Flow Quality Index for Xero Ltd (2020–2025)

Year-by-year earnings quality comparison for Xero Ltd.

Year Quality Index Operating CF (AUD) Net Income YoY Change
2025 3.56x AU$812.82 Million AU$228.14 Million ▼ -2.5%
2024 3.66x AU$591.76 Million AU$161.88 Million ▼ -66.5%
2021 10.92x AU$218.64 Million AU$20.03 Million ▼ -77.6%
2020 48.68x AU$162.31 Million AU$3.33 Million
Cash Flow Quality Index = Operating Cash Flow / Net Income. Ratios above 1.0x indicate cash-backed earnings.