OCF
Operating Cash Flow
Cash generated by a company's core business operations before deducting investments.
What it is
OCF (Operating Cash Flow) measures how much cash a company generates purely from its operating activities — without considering investments (CAPEX) or financing (debt repayment, share issuance).
OCF is the first input in the FCF calculation:
OCF is typically higher than net income, because non-cash charges (depreciation, amortization) are added back.
Why track it
OCF is the basic viability test of a business. A healthy company must consistently generate positive OCF — more cash must come in from operations than goes out.
Negative OCF alongside positive net income is a warning signal — the company may be "earning" only on paper through aggressive accounting methods.