Operating Cash Flow

Operating Cash Flow

Operating cash flow (OCF) is a measure of a company’s financial health and ability to generate cash flow. It is calculated as the difference between operating income and operating expenses.

OCF is used to measure a company’s financial performance and assess its ability to generate cash flow. OCF is also used in financial modeling to assess a company’s ability to pay its debts and meet its financial obligations.

A company with a positive OCF is said to be ‘operationally sound’ and is able to generate enough cash flow to cover its operating costs. A negative OCF indicates that a company is not generating enough cash flow to cover its operating costs.

Operating cash flow is an important metric for assessing a company’s financial health. A positive OCF means that a company can generate enough cash flow to cover its operating costs, while a negative OCF indicates that a company is not generating enough cash flow to cover its operating costs.