Which investing term describes a company’s cash generated from normal business operations?

Operating cash flow is the cash a company generates or uses through its normal business operations.

It includes cash connected with activities such as collecting money from customers and paying suppliers, employees, and other operating costs. The figure is reported in the operating section of the cash flow statement.

Investors compare operating cash flow with net income because accounting profit can include non-cash items, timing differences, and accruals. A profitable company may have weak operating cash flow if customers have not yet paid, while non-cash expenses such as depreciation reduce net income without directly reducing current cash.

Operating cash flow is not the same as free cash flow. Free cash flow is commonly calculated by subtracting capital expenditures from operating cash flow, although definitions can vary. Financing and investing cash flows are separate sections of the cash flow statement.