What is Operating cash flow?
Finance & accounting. A plain-English definition for Australian business owners.
Operating cash flow is the cash generated from the business's core operating activities, excluding investing and financing cash flows.
It's a cleaner measure of underlying business performance than profit, because it strips out non-cash items (depreciation) and timing differences. Strong operating cash flow is the foundation of business sustainability.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
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General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.