What is operating cash flow?

[Good-Person]

Operating cash flow is one of the most important thing when it comes to discussing finance. Operating cash flow involves utilising and calculating cash which is used to manage cash when it comes to dealing with daily operation. So, what is it exactly and why is it important?

 

[Debashis]

Operating cash flow is the cash generated from a company's core operations, excluding cash from investments or financing activities. It indicates a company's ability to generate cash to meet its daily operational needs. It is important as it shows the company's financial health and its ability to cover expenses, invest in growth, and repay debts.

 

[Kane]

In order to pay for your daily expenses, you need cash, and this money is called operational cash. THis is applicable not only in personal finance but also in the business community. You can operate day to day expenses only when you have operational cash. In order to improve the finances of a business or in personal life, your operational cahs should be kep minimal.

 

[Ja sa bong]

The operational cash of your business is needed to manage the business day's activities. If the money isn't provided, it will be hard for the business to be functional. Keeping the operational cash of your business as low as possible is vital to increase the profit you make in the business.