what is the difference between operating and net operating
profit per share
Answer / bharathi avvari
Operating Cash Flow compares the difference between reported Operating or Net Income and actual cash flows of the company. If a company does not have sufficient cash resources set aside to pay off its Current Liabilities, then this shows a sign of inefficiency or problems with inventory turnover (goods not getting sold). A healthy company is one where inventory is turned over at industry standard rate and one where there's enough cash in the bank to meet both short term and long term debt obligations. Operating Cash Flow therefore checks the quality of a company's reported earnings.
Operating Cash Flow is also known as "Cash Flow Provided by Operations" or "Cash Flow from Operating Activities."
The formula for Operating Cash Flow is:
(Earnings Before Interest & Taxes + Depreciation) - Income Taxes
| Is This Answer Correct ? | 8 Yes | 18 No |
Do you know the currency of different countries?
Do you think banking sector plays an important role in boosting the Indian economy?
what is way of success of mba industry?
What Is The Single Supervisory Mechanism?
What do you think social networking sites have affected the daily life of the people?
0 Answers State Bank Of India SBI,
What is Corporate Action ?
Tell something about the demonetization bill introduced in the Lok Sabha?
0 Answers State Bank Of India SBI,
What is the amounts owed to a company that are not going to be paid
What are nationalized banks?
What is Face Value?
One of the measures taken by RBI, open market operations in order to control credit expansion in the economy means?
What is the bank and explain the types of banks?
Business Administration (517)
Marketing Sales (1279)
Banking Finance (3209)
Human Resources (747)
Personnel Management (68)
Hotel Management (29)
Industrial Management (113)
Infrastructure Management (14)
IT Management (97)
Supply Chain Management (16)
Operations Management (39)
Funding (79)
Insurance (494)
Waste Management (1)
Labor Management (48)
Non Technical (73)
Business Management AllOther (546)