Operating profit adjusted for non-cash items relating to operating activities
the cash flow produced from the operation of a business, not from investing activities (such as selling assets) or financing activities (such as issuing debt). Calculated as net operating income (NOI) plus depreciation.
Cash flow from Operations: A pure cash flow computation from selected line items of the cash statement which reflect standard recurring business operations, such as: collections minus payments, etc. This computation measures the amount of cash internally generated which then becomes available for periodic management strategies such as gross fixed asset investment, debt payback, dividends, etc. It is an important measurement, because it can determine the capacity of a business to pursue anticipated strategies.
( OCF) - The inflows and outflows of cash from the normal sales operations of a business. It differs from earnings because earnings may be increased by orders for which payment has not yet been received. Unpaid orders don't increase operating cash flow. OCF also differs from earnings in that earnings are reduced by charges, such as depreciation or amortization, that do not actually reduce cash in the period the charge occurs.
Equivalent to operating profits plus depreciation and amortization. Amortization is not accounted for in operating profit, but under other earnings (expenses). Operating cash flow also excludes certain extraordinary earnings and costs, which under Mexican GAAP are not recorded as part of operating profit. Operating cash flow is not an indicator that is used under generally accepted accounting principles.
Under IFRS: Operating result plus depreciation (EBITDA - Earnings before interest, taxes, depreciation and amortisation). Before IFRS: Operating result plus depreciation, write downs and provisions (EBITDA - Earnings before interest, taxes, depreciation and amortisation).
Cash flow prior to capital expenditures. Companies with positive OCF can invest in capital equipment to grow the business.
Operating income adjusted for major non-cash expenses, depreciation and amortization of intangible assets.
the cash generated from the operations of the Company generally defined as revenues less all operating expenses.
This test measures the funds generated from insurance operations, which includes the change in cash and invested assets attributed to underwriting activities, net investment income and federal income taxes. This measure excludes stockholder dividends, capital contributions, unrealized capital gains/losses and various non-insurance related transactions with affiliates. This test measures a company's ability to meet current obligations through the internal generation of funds from insurance operations. Negative balances may indicate unprofitable underwriting results or low yielding assets.
Dough that's piling up in the course of a company running its business. Fools love cash generators because they can rely less on outside funding to grow their business.
Earnings before depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements.
Operating cash flow (or OCF), as identified by FASB, refers to how much cash a company generates out of the revenues it brings in excluding costs associated with long-term investment on capital items or investment in securities.
