Understand a company's core operational cash generation and liquidity with our easy-to-use Operating Cash Flow (OCF) Calculator. Quickly input Net Income, Depreciation, Amortization, and changes in non-cash working capital to get instant results. This tool is essential for investors, financial analysts, and business owners to assess a company's ability to generate cash from its primary operations, excluding non-cash expenses and financing impacts.
Formula:
OCF = Net Income + Depreciation + Amortization - Net Increase in Non-Cash Working Capital
- Net Income: The company's profit after all expenses, interest, and taxes.
- Depreciation: The non-cash expense of allocating the cost of tangible assets over their useful life.
- Amortization: The non-cash expense of allocating the cost of intangible assets over their useful life.
- Net Increase in Non-Cash Working Capital: The change in (Current Assets - Current Liabilities) from the prior period to the current period, specifically excluding cash and debt. A positive value indicates an increase in non-cash working capital (which uses cash), while a negative value indicates a decrease (which provides cash).