Posted inAll private sectors / Finance & Control / Financial

Operating Cash Flow

Definition of this KPI:
OCF represents the cash generated or used by a company's core operational activities, such as sales, collections from customers, payments to suppliers, and operating expenses. A positive OCF indicates that the companys core operations are generating cash.

Net Income is the company's profit after all expenses.
Depreciation & Amortization is added back because they are non-cash expenses.
Change in Working Capital includes changes in accounts receivable, accounts payable, and inventory.

  • This KPI can be calculated as: Net Income + Depreciation & Amortization - Change in Working Capital
  • The KPI will be measured as: financial value (e.g. €, $)
  • How to interpret the KPI: higher is better
  • The strategic objective to measure with this KPI: Financial stability
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