Cash Flow Metrics
Cash moving through operations, investment, and financing. 16 topics.
Operating Cash Flow (OCF)
Cash generated by the core business, after working-capital movements and the cash paid for operating costs and, usually, tax.
Investing Cash Flow
Cash spent on, or received from, long-term assets and investments.
Financing Cash Flow
Cash from lenders and shareholders, and cash returned to them.
Free Cash Flow (FCF)
Cash left after the spending required to maintain and, in the unlevered or simple version, grow the asset base.
Free Cash Flow to Firm (FCFF)
Free cash flow available to all capital providers, before interest.
Free Cash Flow to Equity (FCFE)
Free cash flow left for shareholders after interest, debt repayments, and after any new borrowing.
Cash Flow from Operations
The operating section total on the cash flow statement. The reported name for the cash the core business produced.
Cash Conversion Ratio
Operating cash flow divided by profit, or sometimes by EBITDA. It shows what share of the accounting result arrived as cash.
Cash Conversion Cycle
The number of days cash is tied up in inventory and receivables, minus the days suppliers finance the business.
Cash Flow Margin
Operating cash flow as a percentage of revenue.
Cash Flow Per Share
Operating cash flow, or sometimes free cash flow, divided by the share count.
Cash Burn Rate
The speed at which a loss-making company uses up its cash.
Cash Runway
How long the cash on hand lasts at the current burn rate.
Working Capital Changes
The cash absorbed or released by movements in inventory, receivables, payables, and similar operating items.
Accruals
The difference between profit and cash. Revenues and costs recorded before the cash moves.
Cash Conversion Efficiency
How effectively profit, or sales, is turned into operating cash flow. A broader name for the cash conversion idea.