Close Navigation
.

Operating Cash Flow Margin

Trading Term

Operating cash flow margin shows how much operating cash a company generates from each dollar of sales. It is calculated by dividing operating cash flow by revenue.

Comparing cash flow margin with accounting profit margins may reveal working-capital changes or noncash expenses. Seasonal businesses and companies receiving customer prepayments may experience significant fluctuations in the measure.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.