Non-Operating Cash Flow

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Non-Operating Cash Flow

The cash flow a company gives or receives from sources other than its operations. Non-operating cash flows are usually non-recurring. Examples of non-operating cash flows include borrowing, a new issue of stock, and a self-tender offer. While non-operating cash flow is not a good indicator of profitability, it can help an analyst find a company's cost of capital and its success in investing its revenue or earnings. Non-operating cash flows are reported on a company's balance sheet.
References in periodicals archive ?
Free cash is equal to: Earnings Before Interest and Taxes (EBIT) - Taxes on EBIT + Change in Deferred Taxes + Depreciation + Capital Expense + Investment in Goodwill + Change in Working Capital and Other Net Assets - Gross Investment + Nonoperating Cash Flow
With the benefit of detailed notes to financial statements, it's possible to recapture most of the significant "off-statement" asset, liability, and earnings data, make adjustments and additional calculations, and arrive at measures that reflect the true operating and nonoperating cash flows of an entity.