Operating Cash Flow


  • The amount of money a business brings in from its normal business operations. As defined by the International Financial Reporting Standards, operational cash flow (OCF) is "cash generated from operations less taxation and interest paid, investment income received and less dividends paid." This means that when determining a business's operating cash flow one must exclude all income from investments in securities or long term investments on capital items, because investment income is not derived from the business's normal operations. Also known as "cash flow from operating activities (CFO)" or "cash flow provided by operations."

operating revenue stream


Related Terms and Acronyms

  • Adjusted Operating Cash Flow (AOCF)Acronym,
    • Business (busn) Abbreviation,
      • Economic activities of a given type.
      • A company, either for-profit or non-profit.
      • Commercial, industrial or professional activities undertaken by an entity.
    • Business Interruption Insurance (BII) Acronym, Important,
      • Insurance that covers losses in business income after an event interrupts business operations.
    • Capital Investments Definition,
      • Money used to purchase permanent fixed assets for a business, such as machinery, land or buildings as opposed to day-to-day operating expenses.
    • Cash Flow Definition,
      • The money an investment produces after subtracting cash expenses from income.
    • Cash Flow from Operating Activities (CFOA, CFO)Acronym,
      • Refers to the amount of cash a company generates from revenues excluding costs associated with long-term investment on capital items or investment in securities.
      More commonly known as just CFO.
    • Dividend Definition,
      • Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
    • Expense Definition,
      • Costs incurred through a business's operations.
    • Gross Profit Margin Definition,
      • The difference between the sales your business generates and the costs you pay out for goods.
    • Interest (IN, int) Acronym & Abbreviation,
      • Money paid for the use of borrowed funds, usually expressed as an annual percentage.
      Bank account transaction code.
    • Investment Income Definition,
      • Income that is earned from investments such as interest, dividends, and capital gains.
    • Loss Definition,
      • When expenses are larger than revenues.
    • Net Cash Flow (NCF) Acronym,
      • Incremental after-tax income plus depreciation expense resulting from investment.
    • Net Operating Cash Flow (NOCF)Acronym,
      • Net Operating Loss (NOL) Acronym, Very Important,
        • A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
      • Operating Cash Flow Demand (OCFD)Acronym,
        • Operating Cash Flow per Share (OPS)Acronym,
            A method for analyzing stocks.
          • Operating Loan Definition,
            • A loan intended for short-term financing, supplying cash flow support or to cover day-to-day operating expenses.
          • Operational Expenses (OpEx) Abbreviation,
            • Costs accruing from a business's business operations.
          • Other Income/Expenses Definition,
            • Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.
          • Pre-Tax Operating Income (PTOI) Acronym,
            • The operating income generated by a company, less expenses, before taxes have been paid.
          • Profit Definition,
            • When revenues exceed expenses.
          • Revenue Definition,
            • Money earned by a company from its business activities.
          • Solvency Definition,
            • To be able to meet one's financial liabilities in the short or long term.
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