Operating Cash Flow

The net cash a company generates minus its business and investment expense. Generally defined as all revenue less all operating expense.

Operating Cash Flow
Operating Cash Flow

Operating cash flow does not involve items like taxes and insurance payments because they cannot be used to help conduct daily business.

This is the most important barometer of a company’s financial health because it indicates how much money is available for maintaining business, in both the present and the future. A company that does not generate cash over the long term will die out over time.

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