![]() OCF = (revenue - operating expenses) + depreciation - income taxes - change in working capital The OCF formula is also written out in other ways, with different terms: Operating cash flow = total cash received for sales - cash paid for operating expenses ![]() How to calculate the operating cash flow formulaĪs we mentioned before, OCF is revenue minus operating expenses. Track this metric over time so you can see when your business is becoming more or less profitable and then dig into why. It’s important that you’re in tune with your business’s ability to generate a profit on its own. The most important perspective of all is the business owner. ![]() Businesses with a favorable OCF can boost their chances of loan approval.
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