What is Operating Cash Flow?
Cash produced by normal business operations.
How to calculate it
Calculate Operating Cash Flow as: Cash generated from core operations. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
Operations generated $300k cash this quarter even though net income was $100k, thanks to deferred revenue.
Example 2
Operations generate $300k of cash this quarter even though net income was $100k, thanks to customers prepaying annual contracts.
Why it matters
Operating cash flow is the cash produced by normal business operations and shows whether the core business can fund itself without external financing. It is often a more reliable health signal than net income because it reflects actual cash movement. Confusing it with net income misses the impact of working capital and deferred revenue.
Benchmark context
Positive and stable operating cash flow is healthy; SaaS businesses with upfront annual billing can show strong operating cash flow even at modest reported profit.
Common pitfalls
Confusing with net income.
Related KPI guides
Turn KPI definitions into governed dashboards
Metricwise helps teams define metrics once, reuse them across dashboards, and ask trusted business questions in plain English.
Get Started