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Operating Cash Flow Calculator

Calculate operating cash flow for business analysis.

Operating Cash Flow Calculator

Calculate operating cash flow for business analysis

Calculation Method

Cash Receipts from Customers ($)

Cash Payments to Suppliers ($)

Cash Payments to Employees ($)

Interest Paid ($)

Income Taxes Paid ($)

Other Operating Cash Payments ($)

Net Income ($)

Depreciation & Amortization ($)

Change in Accounts Receivable ($)

Positive = increase, Negative = decrease

Change in Inventory ($)

Positive = increase, Negative = decrease

Change in Accounts Payable ($)

Positive = increase, Negative = decrease

Other Non-Cash Items ($)

Results

Operating Cash Flow

Calculation Breakdown

Analysis

Positive operating cash flow indicates good operational performance

Negative operating cash flow may indicate operational challenges

Break-even operating cash flow

Enter values and click calculate to see results

How It Works

Direct Method

Formula:

OCF = Cash Receipts - Cash Payments

Lists actual cash inflows and outflows from operating activities.

Advantages:

Provides detailed cash flow information
Shows actual cash receipts and payments
More intuitive and easier to understand

Indirect Method

Formula:

OCF = Net Income + Depreciation - ΔReceivables - ΔInventory + ΔPayables + Other

Adjusts net income for non-cash items and working capital changes.

Advantages:

More commonly used in practice
Links net income to cash flow
Easier to prepare from financial statements

Key Points:

• Operating cash flow measures cash generated from core business operations
• Positive OCF indicates the company generates sufficient cash to maintain operations
• OCF is crucial for assessing financial health and sustainability
• Both methods should yield the same result when calculated correctly

Operating Cash Flow Calculator

Operating Cash Flow Calculator

Results

Calculation Breakdown

Analysis

How It Works

Direct Method

Indirect Method

Key Points:

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