Operating cash flow that lags reported profit can be an indication of problematic accounting, suggesting that profits are being recognised in advance of when cash is received. A high level of accruals has been shown to be a useful predictor of future share price underperformance. Our Operating Cash Flow Reconciliation model is designed to highlight companies with a high level of accruals. The model will flash red each year that a company reports operating cash flow less than 20% of adjusted cash earnings but the model is only triggered when operating cash flow is low for two consecutive years. If triggered, a working capital analysis should be conducted to determine if the shortfall relates to a deterioration in terms of trade, aggressive revenue recognition or something else. We have designed a supplementary spreadsheet to aid this analysis which can be downloaded below.