Real cash from operations.

Operating cash flow (OCF) measures cash actually generated from running the business. Take net income, add back non-cash charges (depreciation, amortization), then subtract the change in working capital. OCF reveals whether profits are translating into real money or being tied up in inventory and receivables growth.

500k net income + 200k D&A - 100k working capital increase = 600k OCF. That's 100k more cash than net income implied because non-cash depreciation didn't actually leave the business. Strong companies show OCF greater than net income consistently - weak signals show when OCF falls below net income for multiple quarters (usually means receivables or inventory growing faster than sales).

OCF is the most manipulation-resistant profitability metric. Revenue can be recognised aggressively; net income can be massaged via one-off reserves; but cash either hit the bank or didn't. Investors scrutinise OCF growth trajectory more than earnings growth, especially for businesses showing strong net income but weakening cash generation.

A worked example

Try the defaults: net income of 500,000, depreciation + amortization of 200,000, working capital change of 100,000. The tool returns 600,000.00. You can adjust any input and the result updates as you type — no submit button, no reload. That's the real power here: seeing how sensitive the output is to one or two assumptions.

What moves the number most

The result responds to Net Income, Depreciation + Amortization, and Working Capital Change. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

The formula behind this

OCF = net income + D&A - working capital change (simplified indirect method). Everything the calculator does is shown in the formula box below, so you can check the math against your own spreadsheet if you want.

What the score tells you

Headline financial numbers — income, savings, debt — each tell part of the story. This calculation stitches several together into a single read you can track over time. The value is in the direction, not the absolute number.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.