operating cash flow

USAGE SUMMARY

"operating cash flow" is a correct and widely used term in written English.
It refers to the amount of cash generated by a company's normal business operations, excluding any external sources of income or expenses. You can use "operating cash flow" when discussing a company's financial statements, analyzing its performance, or making financial decisions. It is commonly used in business and finance contexts. Example: The company's operating cash flow has increased by 25% compared to last year, indicating a strong financial performance.

✓ Grammatically correct

News & Media

Formal & Business

Academia

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

8. Strictly speaking, our measure is working capital from operations and not operating cash flow.

Massachusetts Institute of Technology

Last year those operations kicked out $4.4 billion of operating cash flow.

Forbes

And its operating cash flow from the international operation grew by 67percentto to $20 million.

The New York Times

Operating cash flow was a positive $174 million.

The New York Times

Operating cash flow fell 15 percent, to $982 million.

The New York Times

We calculated three variables, operating cash flow (OCF), operating cash flow divided by current liabilities (CL), and operating cash flow divided by total liabilities (TL).

Harvard Business Review

Zynga generated $326 million of operating cash flow last year.

The New York Times

How good a yardstick is operating cash flow?

Harvard Business Review

(Operating cash flow at Cablevision is defined as operating profit before depreciation and amortization).

The New York Times - Sports

That made operating cash flow, and profits, look much better than they really were.

The New York Times

Liberty Interactive revenue rose 11percentt and operating cash flow increased 21percentt.

The New York Times

Expert writing Tips

Best practice

Use "operating cash flow" in conjunction with other financial metrics, such as net income and capital expenditures, to gain a more complete understanding of the company's financial performance.

Common error

Avoid solely relying on net income as a measure of financial performance; instead, also consider "operating cash flow", which provides a clearer picture of a company's ability to generate cash from its core operations.

Linguistic Context

The phrase "operating cash flow" functions as a noun phrase that identifies a specific financial metric. It is used to name and quantify the cash a business generates from its operations, distinct from other cash flows.

Expression frequency: Very common

Frequent in

News & Media

40%

Formal & Business

35%

Academia

25%

Less common in

Science

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

In summary, "operating cash flow" is a critical financial metric used to evaluate a company's ability to generate cash from its core business operations. As Ludwig AI confirms, the term is grammatically correct and widely used. It appears most frequently in news and media, formal business contexts, and academic research. While related phrases like "cash flow from operations" offer similar meanings, "operating cash flow" specifically focuses on cash generated from normal business activities. When using this phrase, remember that it differs from net income and free cash flow, and analyzing its trends can provide valuable insights into a company's financial health. As the examples from Ludwig show, this phrase is not only common but essential for understanding financial performance.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cash flow from operations

Focuses on the cash generated directly from the company's core business activities.

net operating cash flow

Specifies that the cash flow is calculated after deducting operating expenses.

cash generated from operations

Emphasizes the generation of cash as a result of business operations.

free cash flow

Refers to the cash flow available to the company after covering capital expenditures.

cash flow from core business

Highlights the source of cash flow as the primary business activities.

operational cash generation

Focuses on the ability of operations to generate cash.

business cash flow

A more general term for cash flow related to the business.

working capital from operations

Emphasizes the working capital aspect of cash flow related to operations.

cash profits from operations

Highlights that the cash flow is derived from profitable operations.

funds from operations

A broader term that includes sources of funds beyond just cash.

FAQs

How is "operating cash flow" used in financial analysis?

"Operating cash flow" is used to evaluate a company's ability to generate cash from its core business activities. It is often compared to metrics like net income and capital expenditures to assess financial health and sustainability. Analyzing trends in "operating cash flow" can reveal insights into a company's operational efficiency and its capacity to fund investments or repay debt.

What are some alternative terms for "operating cash flow"?

Some alternative terms for "operating cash flow" include "cash flow from operations", "net operating cash flow", and "cash generated from operations". The best term to use depends on the specific context and the nuances you want to convey.

What's the difference between "operating cash flow" and free cash flow?

"Operating cash flow" reflects the cash generated from a company's normal business operations. "Free cash flow", on the other hand, is calculated as "operating cash flow" less capital expenditures. It represents the cash available to the company after investments in its operations and assets.

How is "operating cash flow" calculated?

"Operating cash flow" can be calculated using either the direct or indirect method. The direct method sums up all cash inflows and outflows from operating activities. The indirect method starts with net income and adjusts it for non-cash items like depreciation, amortization, and changes in working capital.