Non-Operating Cash Flows


DEFINITION of 'Non-Operating Cash Flows'

Cash flows (inflows and outflows) that are not related to the day-to-day, ongoing operations of a business. Non-operating cash flows include borrowings, the issuance or purchase of stock, asset sales, dividend payments, and other investment activity. On most company balance sheets, total cash flows will be broken down into operating cash flows, investing cash flows, and financing cash flows, with the latter two making up non-operating cash flows.

BREAKING DOWN 'Non-Operating Cash Flows'

Investors will evaluate the cash flows along with revenues, profits and other operating metrics when researching individual companies. While the operating cash flows give a better indication of the long-term profitability potential of a company, the non-operating cash flows are also important to follow. These cash flows will shed light on how much it costs a company to raise capital (through debt and share offerings) and how well they manage the balance sheet through investing opportunities and asset sales.

  1. Cash Flow From Financing Activities

    A category in the cash flow statement that accounts for external ...
  2. Cash Flow From Operating Activities ...

    Cash Flow From Operating Activities (CFO) is an accounting item ...
  3. Mission Critical

    An activity, device, service or system whose failure or disruption ...
  4. Non-Core Item

    Items that are considered outside of normal activities or operations. ...
  5. Operating Cash Flow - OCF

    Operating Cash Flow (or OCF) is a measure of the amount of cash ...
  6. Free Cash Flow - FCF

    A measure of financial performance calculated as operating cash ...
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  3. Do you discount working capital in net present value (NPV)?

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  4. How is working capital different from fixed capital?

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