Everything about Operating cash flow
Metric in financial accounting
In financial accounting, operating cash flow (OCF), cash flow provided by operations, cash flow from operating activities (CFO) or free cash flow from operations (FCFO), refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term investment on capital items or investment in securities. Operating activities include any spending or sources of cash that’s involved in a company’s day-to-day business activities. The International Financial Reporting Standards defines operating cash flow as cash generated from operations, less taxation and interest paid, gives rise to operating cash flows. To calculate cash generated from operations, one must calculate cash generated from customers and cash paid to suppliers. The difference between the two reflects cash generated from operations. Wikipedia →
🧭 Start here: a 6-step reading path
- Read the overview: Operating cash flowA 5-minute orientation
- Skim a recent paper: A Structural Model of a Firm’s Operating Cash Flow with ApplicationsInfluential work since 2022
- Pick up a classic book: Investment appraisalThe most-reprinted book on the subject
- Read the landmark paper: The Association of Operating Cash Flow and Accruals with Security ReturnsCited 240 times
- Go sideways: Net incomeA closely related topic
- Go sideways: Cash flowA closely related topic
📖 Definitions
No dictionary entry for this exact phrase.
🗂️ The subject at a glance
🏆 Landmark papers (most cited)
The Association of Operating Cash Flow and Accruals with Security Returns
Do Direct Cash Flow Disclosures Help Predict Future Operating Cash Flows and Earnings?
Operating cash flow opacity and stock price crash risk
Operating cash flow formats: Does format influence decisions?
TRADITIONAL VERSUS OPERATING CASH FLOW IN FAILURE PREDICTION
Operating Performance and Free Cash Flow of Asset Buyers
Operating cash flow asymmetric timeliness in Australia
Why and how firms use operating cash flow in compensation
🆕 Influential since 2022
A Structural Model of a Firm’s Operating Cash Flow with Applications
Analysis of cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, gross profit margin, and earnings per share on the stock price
The Influence of Operating Cash Flow, Net Income, Depreciation Expenses, and Amortization Expenses on Cash Flow Forecasting at PT. Bank XYZ
The Influence of Operating Cash Flows, Investments Cash Flow, and Funding Cash Flow on the Company Value in Technology Sector
The Effect of Operating Cash Flow, Operating Capacity and Sales Growth on Financial Distress
📚 Books worth reading
Investment appraisalUwe Götze, Uwe Götze · 2007
Ranked by number of editions on Open Library, a rough measure of how lasting a book is.
🔗 Related topics
- Net income In business and accounting, net income is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, and taxes, and…
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- Operating margin In business, operating margin—also known as operating income margin, operating profit margin, EBIT margin and return on sales (ROS) - is the ratio of operating…
- Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation, and amortization, commonly known as EBITDA (/ˈiːbɪtdɑː, ˈɛb-/ EE-bit-dah, EB-it-dah), is a measure of a…
- Free cash flow In financial accounting, free cash flow (FCF) or free cash flow to firm (FCFF) is the amount by which a business's operating cash flow exceeds its working…
- Financial ratio A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often…
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- Return on capital Return on capital (ROC), or return on invested capital (ROIC), is a ratio used in finance, valuation and accounting, as a measure of the profitability…