Financials

Operating cash flow

Cash flow from a company core operating activities during a period.

What it means

Operating cash flow starts from net income or operating results and adjusts for non-cash items and working-capital changes. It is a source line for free cash flow calculations.

Example

A receivables increase can reduce operating cash flow even when revenue rose.

What not to infer

Operating cash flow does not subtract capital expenditures or show all financing needs.