Operating cash flow


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Operating cash flow

Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements.

Operating Cash Flow

A ratio of a company's cash flow to either its net income or operating income. The latter ratio provides a more accurate description of a company's profit, while the former takes into account the effects of non-operation transactions on income. Operating cash flow shows the difference, if any, between a company's reported income and actual cash on hand.
References in periodicals archive ?
First, we present the prior literature related to operating cash flow research that grounds our study and develops our hypotheses.
Analysts should be aware that operating cash flow might he altered through the classification of book overdrafts.
The cash dividend coverage ratio provides evidence of the ability to meet current dividends from normal operating cash flow.
16) Operating cash flow is reduced by reserves that are established; however, there is no corresponding increased when such reserves are reduced.