Today’s Topic: “Operating Cash Flow Template“. Operating cash flow is also known as OCF. It is a measure of the cash made by a company’s business essential operations. It is not like the net income (the amount of money remaining, after all, operating expenses).

Operating cash flow express whether a company is capable to make enough positive cash flow to continue and grow its operations. It may need some external financing for growth.

Methods of Cash Flow Statement

The cash flow from operating activities for a business can be presented by the two methods of the statement of cash flows;

Direct method: It presents cash flows from operating activities through a summary of cash outflows and inflows in the company or business firm. This method shows gross cash receipts and payments. Sometimes, direct method cash flow is not the method ideal for most companies as it needs more information to produce.
Indirect Method: This method of cash flow shows the net income and modifies this for balance sheet activities.

Cash Flow Calculator

Cash Flow Calculator can help you in evaluating the factors which can impact your net cash flow. It deals with the amount of cash flow accessible for a business to use for expansion, a projection of future cash flows. prepare a plan for the management of elements (sales, inventory). This calculator helps you to determine the cash flow produced by your business.

How to Create a Cash Flow Projection

When you start a business, you buy goods, keeps them as a record, pays for the records, change them to a product for sale and sell products on credit, and by selling the products you collect the money.

Cash Conversion Cycle

It is the time period from when cash is paid out for goods and inventory, to when cash is received from sales of products. The cash conversion cycle is different from the operating cycle as it permits for the accounts payable payment operating cycle.

It computes the time between the payment for inventory and the receipt of cash from customers, whereas the operating cycle computes the time between buying the inventory and receiving cash from customers.

How The Cash Conversion Cycle is Calculated?


DIO = days inventory outstanding

DSO = days sales outstanding

DPO = days payable outstanding

CCC is also stated as the cash cycle.

What is the Operating Cycle?

It is the average period of time necessary for a business to produce an amount of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods. This is useful for assessing in a direction to maintain or grow the business.

Its formula is the same as the cash conversion cycle (CCC).

What is Free Cash Flow (FCF)?

It is determined by taking the operating cash flow and deducting capital expenditure.

FCF = Operating Cash Flow – Capital Expenditures

It is significant to note that free cash flow trusts seriously on the state of a company’s cash from operations, which in turn is comprehensively inclined by the company’s net income.

Download Free Operating Cash Flow Templates:

Template 1:


12 Month Cash Flow

The purpose of free cash flow is to see what cash is available (free) from the business operations after allowing for cash to control the present growth rate. Then this free cash flow is accessible to improve the growth of the business, spend on new products, and to decrease debt and pay payments to equity benefactors.



    1. John Mathew Article Author

      Hi @GENNIFER thanks for your visit please check your email hope you find our cash flow template helpful for you.


  1. Ronak Purohit

    I want Cashflow template where i can sepearte Operating , Investing and financial activities. Unable to find it, Can you please email me.

  2. Elli Carter

    Dear Sir, Can you send me Template 1 and also I want Cashflow template where i can sepearte Operating , Investing and financial activities. Unable to find it, Can you please email me. Thank you

Leave a Reply

Your email address will not be published. Required fields are marked *