Glossary
Operating cash flow is the cash generated by a company's core business operations before capital expenditures and financing activities.
Operating cash flow (OCF) is the cash a company generates from running its core business, before any spending on long-lived assets or activity in the financing markets. It sits at the top of the cash-flow statement and starts from net income, then adds back non-cash charges and adjusts for changes in working capital.
OCF is valued because it is harder to manage with accounting choices than net income: a company can report a profit while burning cash, and the gap between the two shows up here. Positive and growing operating cash flow is one of the criteria in the Piotroski F-score, and OCF minus capital expenditures gives free cash flow.
Signals.AI provides research, data, and opinions for informational purposes only. It does not provide investment, tax, or legal advice and does not make buy, sell, or hold recommendations.