Operating Cash Flow

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Operating cash flow, abbreviated as OCF, is how much cash a company generates through its core business operations within a specific time.

 

Operating Cash Flow Formula

\(\large{ OCF =  OI + Dep - T + WC }\)  

Where:

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

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

\(\large{ Dep }\) = depreciation

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

\(\large{ T }\) = taxes

 

Tags: Equations for Manufacturing