Cash flow metrics explained
Places selected cashflow metrics that show the cash generated by the operating business and how it relates to other financial figures.
What is operating cash flow?
Cash generated by the ongoing business after changes in working capital. It can differ from reported net income because profit and cash follow different accounting logics. Stated in the company’s reporting currency.
What is free cash flow?
Operating cash flow less the capital expenditure used in the calculation. Free cash flow is a derived figure and is not the same thing as cash available for distribution. Stated in the company’s reporting currency.
What is the free cash flow margin?
Free cash flow relative to revenue. It shows what share of revenue is left as free cash flow under the calculation used. When free cash flow cannot be derived because no capital expenditure is reported, we show and score the operating cash flow margin.
How the metrics become a score
How a metric is placed within its comparison group, and how the area scores and the metrics score are formed from it, is described in the methodology.