cash flow from operations

Also known as operating cash flow, cash flow from operations measures the amount of cash generated by a company's normal business operations. Operating cash flow concentrates on cash inflows and outflows related to a company's main business activities—such as selling and purchasing inventory, providing service and paying salaries—and does not include the impact of investments into (or divestitures out of) the business, nor does it consider dividends. Positive (and increasing) cash flow from operating activities indicates that the company's core business activities are thriving.