Operating Cash Flow Formula
Operating cash flow (OCF) is the measurement of cash generated by a business’s normal operating activities during a period. OCF is found by adding back non-cash items to net income and adjusting for changes in net working capital.
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The simple operating cash flow formula is:
Operating cash flow (OCF) = net income + non-cash expenses - increase in working capital
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.
