1. Finance
  2. Financial Statements

Operating Cash Flow


The cash generated from regular business operations. It indicates the company's ability to generate sufficient cash to maintain and expand its operations. Positive operating cash flow is often a sign of strong financial health.


Net Income + Non-Cash Expenses (e.g., depreciation) + Changes in Working Capital


If net income is $100,000, non-cash expenses are $10,000, and changes in working capital are $5,000, the operating cash flow is $115,000.