How To Calculate Operating Cash Flow in Flexi | Arithmix

Operating cash flow is an important financial metric that measures the amount of cash generated or used by a company's operations. It is a key indicator of a company's financial health and sustainability. In this article, we will discuss how to calculate operating cash flow in Flexi, a popular accounting software used by many businesses.

What Is Operating Cash Flow?

Operating cash flow is the cash generated or used by a company's core business operations. It is calculated by subtracting operating expenses from operating revenues. Operating expenses include all costs associated with running the business, such as salaries, rent, utilities, and supplies. Operating revenues include all income generated by the business, such as sales revenue, service revenue, and interest income.

Operating cash flow is an important metric because it indicates whether a company is generating enough cash from its operations to cover its expenses and invest in future growth. A positive operating cash flow means that a company is generating more cash than it is spending on its operations, while a negative operating cash flow means that a company is spending more cash than it is generating from its operations.

When Is It Valuable To Calculate Operating Cash Flow?

Calculating operating cash flow is valuable for several reasons. First, it helps investors and analysts evaluate a company's financial health and sustainability. A company with a positive operating cash flow is generally considered to be in a better financial position than a company with a negative operating cash flow. Second, operating cash flow can be used to determine a company's ability to pay its bills and meet its financial obligations. Third, operating cash flow can be used to evaluate a company's ability to invest in future growth and expansion.

In summary, calculating operating cash flow is an important financial metric that can help businesses and investors evaluate a company's financial health and sustainability. By using Flexi, businesses can easily calculate their operating cash flow and make informed financial decisions based on this valuable information.

How Do You Calculate Operating Cash Flow in Flexi

Flexi 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 Flexi 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 Flexi, 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 Flexi 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 Flexi 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.