Profitability

Operating Cash Flow

OCF

Cash the business generates from running itself

Definition

Operating cash flow is cash produced by core operations before investing and financing. Unlike earnings, it is harder to dress up with non-cash accounting. Free cash flow starts from OCF and subtracts capex.

Cash from operations (cash-flow statement)

Example

If operations bring in $111B and capex is $13B, free cash flow is about $98B.

Typical range

Mature compounders often show OCF close to or above net income

See it in a Brief