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Adding local short description: "Metric in financial accounting", overriding Wikidata description "total amount of cash generated from operations" |
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{{Short description|Metric in financial accounting}}
In [[financial accounting]], '''operating cash flow''' (OCF), '''cash flow provided by operations''', '''cash flow from operating activities''' (CFO) or '''free cash flow from operations''' (FCFO), refers to the amount of [[cash]] a [[company]] generates from the [[revenue]]s it brings in, excluding [[cost]]s associated with long-term [[investment]] on [[Financial capital|capital]] items or investment in [[securities]].<ref>Ross, Stephen, Randolf Westerfield and Bradford Jordan '''Fundamentals of Corporate Finance'''</ref> Operating activities include any spending or sources of cash that’s involved in a company’s day-to-day business activities.<ref name=":0">{{Cite web|date=2021-01-21|title=Financial Dictionary|url=https://kerneltools.com/post/financial-dictionary-accounting-terminology/|access-date=2021-02-24|website=Kernel|language=en-GB}}</ref> The International Financial Reporting Standards defines operating cash flow as cash generated from operations, less [[tax]]ation and [[interest]] paid, gives rise to operating cash flows.<ref>'''International Accounting Standards 7, Cash Flow Statements (January 2007)'''</ref> To calculate cash generated from operations, one must calculate cash generated from customers and cash paid to suppliers. The difference between the two reflects cash generated from operations.
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