Operating Cash Flow

Benzinga  May 6  Comment 
Cogentix Medical Inc (NASDAQ: CGNT) reported lower-than-expected 1Q16 revenues and GAAP net loss, but its operating cash generation was positive for the second consecutive quarter. Roth Capital Partners’ Chris Lewis downgraded the rating for the...
Forbes  Apr 25  Comment 
Net operating profit after-tax (NOPAT) is the unlevered, after-tax operating cash generated by a business. It represents the true, normal and recurring profitability of a business. GAAP earnings or, even worse, non-GAAP earnings, are highly...
Motley Fool  Nov 9  Comment 
Revenue and cash from operations barely budge as fewer pay up for the company's enterprise technology. Investors sent the stock up right after the quarterly report.
Automotive World  Nov 5  Comment 
Strong financial performance Sales of $808 million Adjusted EBITDA of $65 million; net income of $5 million Cash from operations of $70 million, adjusted free cash flow of $77 million Electronics & Corporate performance Electronics Sales of $771...
newratings.com  Sep 17  Comment 
Nanogate exceeds preliminary half-year figures - Cash flow from operating activities multiplies NANOGATE AG / Key word(s): Half Year Results 17.09.2015 07:30 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group...
newratings.com  Sep 16  Comment 
PALO ALTO (dpa-AFX) - Hewlett-Packard Co (HPQ) on Tuesday provided its fiscal 2016 guidance for HP Inc, the personal systems and printing division being spun off from HP. HP Inc expects fiscal 2016 net earnings of $1.55 to $1.65 per share and...
newratings.com  May 29  Comment 
LONDON (dpa-AFX) - Africa-focused oil and gas company Afren Plc (AFRNF.PK, AFR.L) posted first-quarter revenue of $130.3 million, compared to $269.0 million in the comparable quarter last year. Operating cash flows before movements in working...
newratings.com  May 21  Comment 
Orascom Development Holding AG: 1Q 2015: Another profitable quarter for Orascom Development with a positive cash flow from operations and a stronger balance sheet. EQS Group-Ad-hoc: Orascom Development Holding AG / Key word(s): Quarter...


Operating Cash Flow is the total cash generated from the operations of a company

Operating Cash Flow (alternately "Cash Flow from Operating Activities", or "Cash Flow from Operations") is a measure (listed on the Cash Flow Statement) of the total cash generated from a company's operations. Though there are several ways to perform the actual calculation, most start with the net income (from the income statement), add depreciation, and adjust for changes in working capital (e.g. changes in liabilities, inventories, accounts receivable etc.).

Operating Cash Flow tells how much cash a company has been able to generate from the operations of its business. Since it adjusts for liabilities, receivables, and depreciation it is a more accurate measure of how much cash a company has generated (or used) than measures of profitability such as net income. As such, a massive and/or unexpected discrepancy between the net income and operating cash flow of a company could be indicative of disproportionate non-cash income. For example: A company with a lot of machinery (fixed assets) may have low net income due to depreciation; however the company does not pay for depreciation with cash, and, assuming everything else remains the same, the operating cash flow for the company would be higher than its net income.

The management has far less discretion over the cash flow statement than it does over the income statement -- as a result some investors may find it to be a better reflection of reality than the income statement. Also, given that companies require cash to run its everyday operations, cash flow from operations are likely to highlight any liquidity issues that a company might have.


Rogers Widget company had net income of $500 in 2008. The company has a capital extensive business (think lots of big heavy machinery) and in 2008 it had depreciation expense of $300. Since depreciation doesn't actually require that the company pay out anything in cash, the company has to add back this expense in order to come up with operating cash flow. In 2008, the company generated $800 in cash flow from operations.

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