Financial health
Operating cash flow
Operating CF
What it is
The cash ACTUALLY collected by the business over the period, once purely accounting entries are neutralised.
How to read it
It's the best honesty check on net income. When the two diverge persistently — earnings up but cash down — it's worth understanding why.
What it does not tell you
It does NOT include the investment needed to sustain the business. A company can show healthy operating cash flow and have nothing left once its plants are maintained — hence free cash flow.
Other measures — Financial health
Educational content. Polaris is not a registered investment adviser and makes no recommendation.