Cash Flow & Capital Allocation
Operating Cash Flow
Shows how cash generated by ordinary operations enters, leaves or is allocated inside the company. It is a liquidity and capital-allocation read, not only an accounting-profit read.
Operating Cash Flow
operatingCashFlow · Cash Flow & Capital Allocation
- Definition
- Shows how cash generated by ordinary operations enters, leaves or is allocated inside the company. It is a liquidity and capital-allocation read, not only an accounting-profit read.
- Uses
- Key for mature businesses, dividend/buyback analysis and high-capex companies. It can mislead with temporary working capital, irregular capex, advance collections, M&A or refinancing. Cross-check net income, EBITDA, maintenance capex, net debt and ROIC.
