Definition of 'Cash Flow from Operating Activities'

Definition of 'Cash Flow from Operating Activities':-

Cash Flow From Operating Activities = EBIT + Depreciation – Taxes
Cash Flow From Operating Activities = EBIT + Depreciation – Taxes
Comparing the cash flow from operating activities with EBITDA can give insights into how a company finances short-term capital.
Comparing the cash flow from operating activities with EBITDA can give insights into how a company finances short-term capital.

An accounting item indicating the cash a company brings in from ongoing, regular business activities. Cash flow from operating activities does not include long-term capital or investment costs. It can be calculated as: 

Cash flow from operating activities is reported on the cash flow statement in a company's quarterly/annual report. Income that a company receives from investment activities is reported separately, since it is not from business operations.