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

Restructuring costs are excluded from EBITDA but are included in non-operating cash flow as projected (CAD175 million total).

Fitch Affirms TELUS's IDR at 'BBB+'; Outlook Stable

When the non-operating cash flow items of capital investments, financial items (debt, dividends etc) and exchange rate differences are included, HI achieved a net positive cash flow of [euro]3.5m compared with just [euro]0.6m in 2003 and finished the year with a cash mountain of [euro]8m, a value equal to nearly half the company's sales for 2004.

Hologram Industries releases results

Repurchases are associated with "temporary", non-operating cash flows, which makes repurchases more pro-cyclical and volatile than dividends [43, 51], but also a more flexible payout mechanism.

7: Dividends versus share repurchase

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