Operational Cash Flow refers to the cash generated from a company's regular business activities. It reflects the money a company earns from its core operations, excluding any financing or investment activities. This metric is crucial for assessing a company's ability to maintain and grow its operations without relying on external funding.
A positive Operational Cash Flow indicates that a company can cover its operating expenses and invest in future growth. It is often calculated using the cash flow statement, which details cash inflows and outflows. Investors and analysts closely monitor this figure to evaluate a company's financial health and operational efficiency.