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Cash Flow From Operating Activities

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Dictionary Says

Definition of 'Cash Flow From Operating Activities'

An accounting item indicating the cash a company brings in from ongoing, regular business activities. Cash flow from operating activities does not include long-term capital or investment costs. It can be calculated as:

Cash Flow From Operating Activities = EBIT + Depreciation - Taxes
Investopedia Says

Investopedia explains 'Cash Flow From Operating Activities'

Cash flow from operating activities is reported on the cash flow statement in a company's quarterly/annual report. Income that a company receives from investment activities is reported separately, since it is not from business operations.

Comparing the cash flow from operating activities with EBITDA can give insights into how a company finances short-term capital.

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