Operating cash flow = Cash generated from operations less taxation and interest paid, investment income received and less dividends paid gives rise to operating cash flows per International Financial Reporting Standards.
To calculate cash generated from operations, one must calculate cash generated from customers and cash paid to suppliers. The difference between the two reflects cash generated from operations.
revenue as reported
- increase (decrease) in trade receivables
- investment income (disclosed separately)
- other income that is non cash and non sales related
+ other expenses as reported less
- increase (decrease) in trade payables
- non cash items such as depreciation, provisioning, impairments, bad debts, etc.
- financing expenses
Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability based on net working capital.
The difference between EBITDA and OCF would then reflect how the entity finances its net working capital in the short term. OCF is not a measure of free cash flow and the effect of investment activities would need to be considered to arrive at the free cash flow of the entity.
Operating cash flow up 4.7% at Federated, Allied. (Federated Department Stores Inc., Allied Stores Corp.) (Brief Article)
Dec 18, 1991; CINCINNATI (FNS) -- Combined operating cash flow at Federal Department Stores, Inc., and Allied Stores Corp., which are...
Barrick Earns $1.5 Billion ($1.77 per share) in 2006 Operating Cash Flow Exceeds $2.1 Billion ($2.48 per share)
Feb 22, 2007; TORONTO, ONTARIOCCNMatthews - Feb. 22, 2007) - Barrick Gold Corporation (NYSE:ABX)(TSX:ABX)(LSE:BGD) - YEAR-END REPORT 2006 -...
TIDE COMES IN FOR TCI OPERATING-CASH FLOW RISES 23.7 PERCENT AT FINANCIALLY AILING CABLE OPERATOR.(Business)
Apr 30, 1997; Byline: Rebecca Cantwell Rocky Mountain News Staff Writer Tele-Communications Inc. showed the brighter picture financial analysts...