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 ?
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.
A limitation on the use of this metric is that Free Cash Flow does not represent the total increase or decrease in cash for the period because it excludes certain non-operating cash flows.
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