Is Operating Cash Flow (OCF) the Same as Net Income?

Operating cash flow (OCF) is not the same as net income, as they measure different aspects of a company’s financial performance. Net income represents the profit or loss after all expenses, including taxes and interest, have been deducted from revenues. In contrast, operating cash flow focuses solely on the cash generated or used by a company’s core operating activities, excluding non-cash items like depreciation and amortization. While net income provides a broader picture of profitability, OCF reflects the cash available to the company for reinvestment, debt repayment, and other financial obligations.