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Search for an ETF or holding
Updated 1mo ago.
Updated 1mo ago.
Cash generated solely by operating activities, before CapEx. Broader than FCF — includes everything in and out of the business (customers, suppliers, payroll). If a company shows a profit but has negative operating cash flow, it's a red flag (unpaid receivables, etc.).
A company reports $200M net profit, but operating cash flow is $300M — the gap comes mostly from depreciation, an accounting charge that doesn't drain cash.
Accounting profit can be massaged; cash, far less. Strong operating cash flow above net profit is a good sign. Conversely, a company profitable "on paper" but with negative cash flow should raise a flag.