Operating Cash Flow

The cash generated or consumed by a company's core operations, excluding financing or investment activities.

Operating Cash Flow refers to the amount of cash generated by a business's core operations within a specific period, such as a month, quarter, or year. It reflects the cash inflows and outflows directly related to the company's day-to-day activities, excluding non-operating items like investments or financing. Operating cash flow is a crucial metric for small business owners as it indicates the cash generated from their primary revenue-generating operations, providing insights into the company's financial health and its ability to meet operational expenses, invest in growth opportunities, and service debts. By monitoring and analyzing operating cash flow, small business owners can make informed decisions regarding budgeting, cash flow management, and strategic planning.