Cash flow from assets is the total cash flow to creditors and cash flow to stockholders, consisting of the following: operating cash flow, capital spending and change in net working capital.
Operating cash flow is the cash generated from a firm's normal business activities. Operating cash flow is equal to revenues minus costs, excluding depreciation and interest. Depreciation expense is excluded because it does not represent an actual cash flow; interest expense is excluded because it represents a financing expense.
Formula:
Cash Flow From Assets = (f - n - w)
Where,f = Operating cash flow
n = Net capitalspending
w = Changes in net working capital