operating cash flow

How Does Operating Cash Flow Differ from Free Cash Flow?

While OCF focuses solely on cash generated from operating activities, Free Cash Flow (FCF) goes a step further. FCF is calculated by subtracting capital expenditures from OCF. This metric provides a clearer picture of the cash available for distribution to shareholders or reinvestment after maintaining the company’s asset base.

Frequently asked queries:

What is Operating Cash Flow?
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