OCF
Business & Finance abbreviation · Finance
| Stands for | Operating cash flow |
|---|---|
| Categories | Business & Finance |
OCF stands for Operating cash flow, a finance abbreviation.
Cash generated by a company's normal business activities during a period, shown as the first section of the cash flow statement. It starts from net income, adds back non-cash charges such as depreciation and adjusts for changes in working capital.
Example: OCF of $2.1 billion comfortably covered the $900 million capex program and the dividend.
Usage notes
Also called cash flow from operations (CFO) or cash from operating activities. US GAAP classifies interest paid within operating cash flow, while IFRS has historically allowed a choice. A company whose OCF runs persistently below net income may be booking revenue it has not yet collected, a red flag for analysts.
Related abbreviations
More finance abbreviations
- MRR – Monthly recurring revenue
- NewCo – New company
- NOPAT – Net operating profit after tax
- NPV – Net present value
- NTM – Next twelve months
- NWC – Net working capital
- OpCo – Operating company
- OpEx – Operating expenditure
- PE – Private equity
- PI – Profitability index
- PIK – Payment in kind
- PIPE – Private investment in public equity