Cash Flow From Operating Activities

Cash flow from operating activities (CFO) is an accounting item that indicates the amount of money a company brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service. Cash flow from operating activities does not include long-term capital or investment costs.

CFO can be calculated as follows:

Cash Flow From Operating Activities = EBIT – Taxes + Depreciation – Working Capital Investment

It is also known as operating cash flow (OCF) or net cash from operating activities.

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