Operating Cash Flow Calculator

Derive operating cash flow from net profit by adding back non-cash charges and working-capital movements.

About Operating Cash Flow Calculator

The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the cash flow statement up from its components makes clear which line is moving it, which a single headline number hides.

Formula

Operating Cash Flow

Operating Cash Flow = Net profit + Depreciation and amortisation + Other non-cash charges − Increase in working capital

Net profit: Component of the cash flow statement
Depreciation and amortisation: Component of the cash flow statement
Increase in working capital: Component of the cash flow statement
Other non-cash charges: Component of the cash flow statement

Worked example

With the default values below, Operating Cash Flow Calculator returns Operating Cash Flow of 78,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Net profit: 58,000
Depreciation and amortisation: 28,000
Increase in working capital: 12,000
Other non-cash charges: 4,000

Results

Operating Cash Flow: 78,000.00
Total Positive Components: 90,000.00
Total Deductions: 12,000.00
Result as Share of Positive Components: 86.67%
Verdict: Positive — the components net to a surplus

Step by step

1Values used
2Operating Cash Flow
3Operating Cash Flow= 78,000.00
4Total Positive Components= 90,000.00
5Total Deductions= 12,000.00
6Result as Share of Positive Components= 86.67
7Verdict= Positive — the components net to a surplus

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Operating Cash Flow calculated?

Operating Cash Flow = Net profit + Depreciation and amortisation + Other non-cash charges − Increase in working capital The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.

Why does Operating Cash Flow matter?

Working the cash flow statement up from its components makes clear which line is moving it, which a single headline number hides.

What values do I need to enter?

This calculator takes 4 inputs: Net profit, Depreciation and amortisation, Increase in working capital, Other non-cash charges. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.