Operating cash flow — Glossary

The longer version

It starts from net income and adjusts for items that do not involve cash, such as depreciation, and for changes in working capital, such as money owed by customers or to suppliers. It appears in the cash flow statement, separate from investing activities like buying equipment and financing activities like borrowing or paying dividends.

It shows whether the core business produces real cash. A company can report profit and still run short of cash if customers pay slowly or inventory builds up. Strong operating cash flow means the business can fund itself, and it is the starting point for free cash flow.

It can be volatile. Timing of payments, seasonal patterns and one-off items can move it sharply from one quarter to the next, and a boost from delaying payments to suppliers may not last.

Compare it with net income, watch the trend over several periods and read what is behind big changes in working capital.

Where we use “Operating cash flow”

Tech BusinessThe Hyperscaler Funding Gap: How Big Tech's AI Capex Is Being Paid For
Four of the five largest AI spenders reported negative free cash flow in their latest quarter, yet operating cash still covers most of their capex in aggregate. Here is how bonds, new stock and leases fill the gap.
Nov 1, 2026Key term
Tech BusinessAlphabet's Sell-Off: Cash Burn More Than Search
Alphabet's filings show Search slowed but kept growing, while free cash flow turned negative and buybacks stopped. Here is what each source can and cannot show about the 13% drop.
Oct 31, 2026Key term
Tech BusinessThe AI Capex Scorecard: Who Wall Street Forgave and Who It Punished
Four Big Tech companies reported about $207 billion of quarterly capex on four different definitions, and their stocks moved very differently. Here is what the cash-flow data can and cannot show.
Oct 30, 2026Key term
Tech BusinessMicrosoft's Voluntary Exit Offer: What the One-Page Memo Leaves Out
Microsoft's 26 October Voluntary Exit Offer has one press-supported figure, about 60,000 eligible employees, and no published cost, deadline or acceptance count. We separate what the company post says from what only press reports and spoken statements supply.
Nov 1, 2026
Tech BusinessMeta's $97.5 Billion Fundraise
Meta's $97.5 billion headline bundles three pieces at three stages: $12.5 billion closed, $25 billion contracted for later cash, and a $60 billion plan with no agreement yet. Here is what each stage means for when Meta can spend the money and when dilution begins.
Nov 1, 2026
Tech BusinessAmazon's Stock Drop: The Cash Cost of Growth
Operating income rose 61% and AWS grew 39%, yet trailing free cash flow fell to negative $42.4 billion and the shares dropped after hours. Here is what Amazon's figures can and cannot explain.
Oct 31, 2026

The longer version

Where we use “Operating cash flow”

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