Net cash flow from operating activities refers to the net cash flow generated by an enterprise from operating activities. It reflects the difference between cash receipts and cash expenditures from business activities.
The method of calculating net cash flow from operating activities is as follows:
Find your business's cash flow statement, which includes cash flow from operating activities** and its purpose.
Find all items of cash flow from operating activities in the cash flow statement, including cash received from the sale of goods, provision of services, tax refunds received, and other cash received related to operating activities.
Add up the ** items of cash flow from all operating activities to get the total cash inflow amount.
Find all the items of cash flow from operating activities in the cash flow statement, including the purchase of goods, the cash paid for services, the payment to employees, and the taxes paid.
The total cash outflow amount is obtained by adding up the use items of all operating cash flows.
Subtract the total cash inflow from the total cash outflow to obtain the net cash flow from operating activities.
It should be noted that the net cash flow from operating activities is the net cash flow from the operating activities of the enterprise, which is not exactly the same as the net profit of the enterprise. Because net profit includes non-cash items, such as depreciation, amortization, etc., while net cash flow from operating activities only calculates the difference between cash receipts and cash expenditures.