Operating Cash Flow (OCF)

Operating Cash Flow (OCF) represents the amount of cash generated by a company's regular business operations. It measures the cash inflow and outflow from core operating activities, excluding income from investments or financing activities. OCF indicates whether a company can generate sufficient positive cash flow to maintain and grow operations without external financing.

Formula: Operating Cash Flow = Net Income + Non-Cash Expenses (e.g., Depreciation) + Changes in Working Capital

A consistently positive OCF is vital for business sustainability, debt repayment, and reinvestment.