Operating Cash Flow (OCF) is a common financial measure to determine whether the company is able to achieve the required cash flow to grow its operations. It is useful for measuring the cash margin that is generated by the organization's operations. The operating cash flow is calculated by summing the Net income, Noncash Expenses (Usually Depreciation Expense) and Changes in Working Capital. Use the below Operating Cash Flow Calculator for the OCF calculation of an organization.
Operating Cash Flow (OCF) is a common financial measure to determine whether the company is able to achieve the required cash flow to grow its operations. It is useful for measuring the cash margin that is generated by the organization's operations. The operating cash flow is calculated by summing the Net income, Noncash Expenses (Usually Depreciation Expense) and Changes in Working Capital. Use the below Operating Cash Flow Calculator for the OCF calculation of an organization.
If the EBIT, depreciation and tax of an organization are Rs 30000, Rs 10000 and Rs 2000, then
OCF = 30000 + 10000 - 2000
= Rs 38000