{"id":3974,"date":"2023-03-19T07:27:39","date_gmt":"2023-03-19T07:27:39","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/operating-cash-flow\/"},"modified":"2023-03-19T07:27:39","modified_gmt":"2023-03-19T07:27:39","slug":"operating-cash-flow","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/operating-cash-flow\/","title":{"rendered":"Operating Cash Flow"},"content":{"rendered":"<p>\nOperating Cash Flow (OCF) is a measure of cash generated by a company&#8217;s normal business operations. Operating cash flow is an indicator of a company\u2019s capability to generate sufficient cash flow to maintain and grow its business operations.<br \/>\nIn case of absence of required cash flow, the company may require financing from other sources for capital expansion or growth. The OCF is also an important parameter for investors and creditors for assessing the business of a company, its financial strength as well as the future prospects.<\/p>\n<h2>Calculation of Operating Cash Flow<\/h2>\n<p>OCF can be calculated through two methods<br \/>\nDirect method<br \/>\nIt is a simple method and involves the Total Revenues and Expenses<br \/>\nOperating Cash Flow = Total Revenue &#8211; Operating expenses<br \/>\nIndirect method<br \/>\nThis takes into consideration the change is Assets\/Liabilities:<br \/>\nOperating Cash Flow = Net Income +\/- change in assets or liabilities + Expenses (Non cash)<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Operating Cash Flow (OCF) is a measure of cash generated by a company&#8217;s normal business operations. Operating cash flow is an indicator of a company\u2019s capability to generate sufficient cash flow to maintain and grow its business operations. In case of absence of required cash flow, the company may require financing from other sources for [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3974","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3974"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3974\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}