Saturday, December 29, 2018

Finance OCF - Operating Cash Flow


There are multiple ways to calculate OCF, including:

OCF = EBIT + Depreciation – Taxes

OCF = Net Income + Depreciation

OCF = (Sales-Expenses-Depreciation(*(1-T) + Depreciation

OCF = (Sales – Expenses)*(1-T) + (Depreciation)*(T)

Note OCF reflects data from the income statement,.. balance sheet changes like NWC and ATSV are not included in its calculation.




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