Operating Cash Flow

DailyFinance  Mar 28  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/28/14 -- Rio Alto Mining Limited ("Rio Alto") (TSX:RIO)(NYSE:RIOM)(LMA:RIO)(DBFrankfurt:MS2) announces that for 2013 net income amounted to $30.8 million or $0.17 per share and that cash flow from...
DailyFinance  Mar 24  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/24/14 -- SilverCrest Mines Inc. (TSX:SVL)(NYSE MKT:SVLC) (the "Company" or "SilverCrest") is pleased to announce its audited consolidated financial results for the fourth quarter and year ended...
The Hindu Business Line  Mar 19  Comment 
Indian companies are boosting their credit profiles by divesting stake in businesses and selling assets or using their free operating cash flows to reduce debt, Standard & Poor’s said today.
DailyFinance  Mar 12  Comment 
MONTREAL, QUEBEC -- (Marketwired) -- 03/12/14 -- SEMAFO (TSX: SMF)(OMX: SMF) today reported its financial and operational results for the fourth quarter and year ended December 31, 2013. All amounts are in US dollars unless otherwise...
SeekingAlpha  Mar 10  Comment 
By Christopher Dall: Given the recent bias of articles, specifically the long camp and short camp, and their gift to the market of short-term volatility, I decided to begin an initiative toward the old-fashioned, think-it-through strategy, by...
Cellular News  Mar 7  Comment 
SandP said that it raised the rating to reflect its expectation that Bharti will use its significant free operating cash flows and funds from strategic measures to reduce its leverage to a level that is in line with an "intermediate" financial...
Benzinga  Feb 27  Comment 
In a report published Thursday, Morgan Stanley analyst Jennifer Swanson Lowe reiterated an Equal-Weight rating on Workday (NYSE: WDAY). In the report, Morgan Stanley noted, “Workday exited FY14 on a high note as the company beat consensus...
DailyFinance  Feb 25  Comment 
YOQNEAM, ISRAEL -- (Marketwired) -- 02/25/14 -- MIND C.T.I. LTD. (NASDAQ: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers as well as unified...
SeekingAlpha  Jan 30  Comment 
By The Value Investor: Investors in AT&T (T) are not happy with the guidance for this year's cash flows. Lower operating cash flows, combined with continued growth of capital expenditure requirements puts available cash flows to return to...
DailyFinance  Dec 2  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/02/13 -- Avino Silver and Gold Mines Ltd. (TSX VENTURE: ASM)(NYSE MKT: ASM)(FRANKFURT: GV6) ("Avino" or "the Company") is pleased to report its financial results for the third quarter ended...


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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