Growth & Momentum
Operating Cash Flow Growth YoY
Shows how much cash generated by ordinary operations rises or falls against the same period one year earlier. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can
Operating Cash Flow Growth YoY
operatingCashFlowGrowth · Growth & Momentum
- Definition
- Shows how much cash generated by ordinary operations rises or falls against the same period one year earlier. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can exaggerate the signal.
- Calculation
- (Current period value - prior comparable period value) / absolute prior comparable period value.
- Uses
- Useful for detecting acceleration, deterioration and persistence. It works best in businesses with recurring or secular demand; it is weaker in cyclicals, commodities, banks, insurers and turnarounds. Cross-check with margins, ROIC, FCF per share, debt and dilution.
