Derive operating cash flow from net profit by adding back non-cash charges and working-capital movements.
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.
Operating Cash Flow
Operating Cash Flow = Net profit + Depreciation and amortisation + Other non-cash charges − Increase in working capital
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.
Working the cash flow statement up from its components makes clear which line is moving it, which a single headline number hides.
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.