Operating Cash Flow: Better Than Net Income?
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.
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