A

Glossary

Operating Cash Flow

Also: OCF

Essential — core valuation theory

What it measures

Cash from core operations. If OCF > Net Income = high-quality earnings, not accounting tricks.

Formula

Net Income + D&A + Working Capital Changes

Related metrics

FCFD&ANet Margin

Source

McKinsey, Valuation (7th ed.) ch. 10

Previous

Net Operating Profit Less Adjusted Taxes

Next

Operating Margin