![]() ![]() In other words, cash inflows must always be greater than cash outflows in order for the business to be profitable and able to successfully pay its bills. Basically, it shows how much cash flow is generated from the business operations without regard to secondary sources of revenue like interest or investments.įor example, a company that manufactures widgets must make more money selling them than it cost to produce them. ![]() ![]() Operating cash flow (OCF), often called cash flow from operations, is an efficiency calculation that measures the cash that a business produces from its principal operations and business activities by subtracting operating expenses from total revenues.
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