To get Operating Cash Flow, use the formula: Cash Received from sales – cash paid for expenses related to the operation of the business. This gives you the cash generated from normal business operations. It tells you if the business is generating enough cash from sales to stay in business.
Disclaimer
Kindly note that this is not financial advice.Our website services, content and products are for general informational and educational purposes only and is not a substitute for professional advice. We remind our readers to be careful with their money.You should NOT rely upon the information or opinions you read. Preferably, you should use what you read here as starting points for doing independent research on companies, products and investing techniques. Then judge for yourself the worthiness of the material that has been shared in our website.
« Back to Financial Terms Dictionary