From top line revenue to gross profit, companies use a variety of financial metrics to analyze their performance.
There's just one problem: when it comes to these metrics, there can be a substantial difference between the accounting figures and the reality of a company's bank accounts.
This is where operating cash flow comes in. This financial metric is crucial to measure because it shows how much actual cash is on hand to fund ongoing business operations.
In this article, we’ll explore what operating cash flow is, how to calculate it, and proven strategies for improving cash inflow and outflow.
Let's get started.