Operating cash flow

(redirected from Operating Cash Flows)

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 ?
In this article we report the results of an experiment that tests whether creditors use operating cash flows as prevailing theory prescribes (e.
This ratio is computed as retained operating cash flows divided by acquisitions.
If the cash flow statement reports operating cash flows using the indirect method, then the change in balance of such an overdraft could be treated as an adjustment to operating cash flows.