Cash flow from operations
Financial Accounting glossary · Statement of Cash Flows
Definition
Cash generated by core business activities (CFO).
Cash flow from operations in plain English
Cash flow from operations (CFO) answers one blunt question: did the actual, everyday business bring in real cash? It ignores loans, selling equipment, or investor money and looks only at the core hustle — selling stuff and paying the bills to make it. Picture a lemonade stand: CFO is the cash left after you sold cups and paid for lemons and sugar, not the $50 your uncle lent you. A healthy company should eventually make cash from operations, because you can't survive forever on borrowed money.
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Practice Cash flow from operations
What is the Cash Flow from Operations (CFO) using the indirect method?
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