Operating Cash Flow Calculator Online

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Operating Cash Flow Calculator

Operating Cash Flow Calculator

The real money a company is getting from operations Cash  Flow. The Operating Cash flow  equal to added to net income , depreciation , amortization , change operating working capital , income tax payable , net of other cash flows.

Formula us,

Operating cash flow = Net income + Depreciation + Amortization + Change operating working capital + Income tax payable + Net of other cash flows

let us consider,

  • Change in inventory: It includes the acquisition and consumption of inventory.
  • Change in accounts receivables: This item refers to the money that clients have to pay to the company for the goods or services provided.
  • Change in accounts payable: Contrary to the previous one, this item refers to the company’s debt with its providers/suppliers.
  • Net operating cash flow increasing and higher than net income: A cash flow from operating activities in these conditions can only mean a successful company .
  • Net operating cash flow decreasing and lower than net income can only mean bad times for the business. Basically, the company is earnings.
Calculate Operating cash flow 

Example,

Operating cash flow = Net income + Depreciation + Amortization + Change operating working capital + Income tax payable + Net of other cash flows

Net income = 30,00$

Depreciation + Amortization = 6000$

Change inventory = 48,00$

Change accounts receivables = -6,000$

Change accounts payable = 7,000$

Income tax payable = -18,000 $

The answer is operating cash flow  = 44,800$

 

 

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