Cash flow from Operations (CFOPS)

FreightWaves Customer SuccessRetired Indices

What is it?

Cash flow from operating activities (CFO) is an accounting item that indicates the amount of money a company brings in from the ongoing regular business activities, such as manufacturing and selling goods or providing a service.

Who is interested?

The financial community and investors.

What does it tell me?

CFO focuses only on the core business, is the purest measure of a company’s profitability on a cash basis (versus accrual accounting) and demonstrates its ability to self-finance its operations (versus tapping the debt or equity markets).