How To Calculate Operating Cash Flow in DELMIAworks | Arithmix

Operating cash flow is an important metric that helps businesses understand the amount of cash generated from their operations. It is a measure of the cash inflows and outflows that are directly related to a company's core business activities. Calculating operating cash flow can be a bit tricky, but with the right tools and knowledge, it can be done easily and accurately.

What Is Operating Cash Flow?

Operating cash flow is the amount of cash generated by a company's operations, after accounting for all of the expenses associated with running the business. This includes things like salaries, rent, utilities, and other operating expenses. Operating cash flow is an important metric because it helps businesses understand how much cash they have available to reinvest in their business, pay down debt, or distribute to shareholders.

Operating cash flow is calculated by taking the company's net income and adding back any non-cash expenses, such as depreciation and amortization. Then, any changes in working capital are factored in, such as changes in accounts receivable, accounts payable, and inventory. The resulting number is the company's operating cash flow.

When Is It Valuable To Calculate Operating Cash Flow?

Calculating operating cash flow is valuable for businesses in a number of situations. For example, if a company is considering taking on debt or issuing new shares of stock, lenders and investors will want to see the company's operating cash flow to ensure that it has the ability to generate enough cash to service its debt or pay dividends.

Operating cash flow is also valuable for businesses that are looking to make strategic investments or acquisitions. By understanding how much cash the company generates from its operations, management can make more informed decisions about how to allocate resources and invest in growth opportunities.

Overall, calculating operating cash flow is an important part of financial analysis for businesses of all sizes. By understanding how to calculate operating cash flow and what it means for their business, entrepreneurs and managers can make better decisions and drive long-term success.

How Do You Calculate Operating Cash Flow in DELMIAworks

DELMIAworks itself isn’t naturally geared towards letting you calculate complex metrics like Operating Cash Flow. As an alternative, teams typically use products like Arithmix to import data from DELMIAworks and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like DELMIAworks, combine it with data from other systems, and create calculations like Operating Cash Flow.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Operating Cash Flow in Arithmix

Calculating metrics like Operating Cash Flow is simple in Arithmix. Once you've created your free account, you’ll be able to import your DELMIAworks data, and use it to create natural language formulas for metrics like Operating Cash Flow.

Arithmix is designed to give you the power to build any calculations you want on top of your DELMIAworks data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.