Fundamental Glossary / Cash Flow Metrics
Operating Cash Flow (OCF)
Cash generated by the core business, after working-capital movements and the cash paid for operating costs and, usually, tax.
Formula
The operating section of the cash flow statement. The indirect method starts from profit and adjusts for non-cash items and working-capital changes.
What it means
OCF is the cash version of the operating result. Analysts quote it as the metric. The statement heading for the same total is often cash flow from operations.
A company can report profit and negative OCF when receivables and inventory absorb the earnings. The reverse happens when it collects old bills.
How to read it
OCF that tracks profit over several years means the earnings are collected. OCF that lags profit for a long stretch means the quality of earnings needs work.
What to watch
A single strong year can come from stretching payables. Look at working-capital changes beside the total, and prefer a multi-year average.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.