Answers the Question
How much cash does the company bring in from regular activities?
Calculator for Operating Cash Flow
What Is the Operating Cash Flow?
Examines how much cash the business receives from regular activities.
Also known as:
- cash flow provided by
- operations cash flow from operating activities
- free cash flow from operations
- operating cash flow
Why Is it Important?
- Many companies look like they are generating large amounts of profit but fail suddenly. This is because they do not keep a close eye on the amount of cash coming in.
Formula(s) to Calculate Operating Cash Flow
- OPERATING CASH FLOW = EBIT + DEPRECIATION - TAXES
- Including investment costs.
- Increasing account receivables.