Key Takeaways · Operating cash flow measures cash generated by a company's business operations. · Free cash flow is the cash that a company generates from its ...LinkedInwithBackgroundYourPrivacyRightsInvestopediaandourthird-partypartnersusecookiesandprocesspersonaldatalikeuniqueidentifiersbasedonyourconsenttostoreand/oraccessinformationonadevice,displaypersonalizedadsandforcontentmeasurement,audienceinsight,andproductdevelopment.TochangeorwithdrawyourconsentchoicesforInvestopedia.com,includingyourrighttoobjectwherelegitimateinterestisused,clickbelow.Atanytime,youcanupdateyoursettingsthroughthe"EUPrivacy"linkatthebottomofanypage.Thesechoiceswillbesignaledgloballytoourpartnersandwillnotaffectbrowsingdata.ListofPartners(vendors)Weandourpartnersprocessdatato:Activelyscandevicecharacteristicsforidentification.Useprecisegeolocationdata.Storeand/oraccessinformationonadevice.Selectpersonalisedcontent.Createapersonalisedcontentprofile.Measureadperformance.Selectbasicads.Createapersonalisedadsprofile.Selectpersonalisedads.Applymarketresearchtogenerateaudienceinsights.Measurecontentperformance.Developandimproveproducts.ListofPartners(vendors)IAcceptShowPurposesFinancialRatiosGuidetoFinancialRatiosCorporateFinance&AccountingFinancialRatiosTableofContentsExpandFreeCashFlowvs.OperatingCashFlowOperatingCashFlowFreeCashFlowFreeCashFlowvs.OperatingCashFlowExamplesFreeCashFlowvs.OperatingCashFlow:AnOverviewFreecashflowisthecashthatacompanygeneratesfromitsnormalbusinessoperationsbeforeinterestpaymentsandaftersubtractinganymoneyspentoncapitalexpenditures.Capitalexpenditures,orCAPEXforshort,arepurchasesoflong-termfixedassets,suchasproperty,plant,andequipment. Operatingcashflow,ontheotherhand,isthecashthat'sgeneratedfromnormalbusinessoperationsoractivities.Operatingcashflowshowswhetheracompanygeneratesenoughpositivecashflowtorunitsbusinessandgrowitsoperations.Freecashflowandoperatingcashflowareoftenusedasmetricswhencomparingcompetitorsinthesameorcomparableindustries.Operatingcashflow,fr