Operating Cash Flow: Better Than Net Income?

Author: External Author | | Categories: Cash Flow Financial Planning , Financial Reporting Services

Operating cash flow (OCF) is the lifeblood of a company and arguably the most important barometer that investors have for judging corporate well-being. Although many investors gravitate toward net income, operating cash flow is often seen as a better metric of a company's financial health for two main reasons. First, cash flow is harder to manipulate under GAAP than net income (although it can be done to a certain degree). Second, "cash is king" and a company that does not generate cash over the long term is on its deathbed.

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Original Article Source Credits:   Investopedia , https://www.investopedia.com/

Article Written By:  RICK WAYMAN

Original Article Posted on:  Jun 25, 2019

Link to Original Article:  https://www.investopedia.com/articles/analyst/03/122203.asp

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