Operating Cash Flow

Operating Cash Flow (OCF) is the cash generated by a company's core business operations, as reported in the cash flow statement. It represents the net inflow of cash after accounting for day-to-day operational revenues and expenses, excluding investing and financing activities. OCF is considered a more reliable measure of financial health than net profit, as it strips out accounting adjustments and non-cash items. Consistently positive OCF signals that a business can sustain itself and grow without relying on external debt or equity financing.