Operating Cash Flow

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Operating cash flow, abbreviated as OCF, is how much cash a business generates after capitol expenditures during a given period of time.

 

Operating cash flow Formula

\(\large{ OCF = I +  E  -  WC - T }\)   

Where:

\(\large{ OCF }\) = operating cash flow

\(\large{ WC }\) = change in working capitol

\(\large{ E_{nc} }\) = non-cash expenses

\(\large{ I }\) = operating income

\(\large{ T }\) = taxes

 

Tags: Equations for Manufacturing