Operating Cashflow

Operating Cash Flow (OCF) is the amount of cash generated by the regular operating activities of a business within a specific time period. OCF begins with net income (from the bottom of the income statement), adds back any non-cash items, and adjusts for changes in net working capital, to arrive at the total cash generated or consumed in the period. When performing financial analysis, operating cash flow should be used in conjunction with net income, free cash flow (FCF), and other metrics to properly assess a company’s performance and financial health. [1]


[1] Corporate Finance Institute. Retrieved May 21, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/accounting/operating-cash-flow/

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