Operating Cash Flow Top Down Approach Calculator

Operating Cash Flow (OCF) is used to determine company's ability 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. There are many techniques in determining the OCF. One among that is the top-down approach. It uses the company sales, costs and taxes to determine the OCF. Use the operating cash flow top down approach calculator to find the amount of cash generated by the company.

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Formula:

Operating Cash Flow = Sales - Costs - Taxes

Example:

Find the Operating cash flow (OCF) of a company whose total sales is $500000, the total cost is $25000 and the amount of taxes is $3000?

Solution:

By Top Down Approach, Operating Cash Flow = 500000 - 25000 - 3000
= $472000

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