How To Calculate Operating Cash Flow Margin in Epicor | Arithmix

Operating cash flow margin is an important metric that helps businesses determine their financial health. It is a measure of the cash generated by a company's operations, and it shows how efficiently a company is using its cash to generate revenue. Calculating operating cash flow margin can be a bit tricky, but it is an essential step in understanding your company's financial performance.

What Is Operating Cash Flow Margin?

Operating cash flow margin is a financial ratio that measures the percentage of a company's revenue that is generated from its operating activities. It is calculated by dividing operating cash flow by revenue. Operating cash flow is the cash generated by a company's operations, while revenue is the total amount of money earned from sales.

Operating cash flow margin is an important metric because it shows how efficiently a company is using its cash to generate revenue. A high operating cash flow margin indicates that a company is generating a lot of cash from its operations, which means it can reinvest that cash into the business or pay dividends to shareholders. A low operating cash flow margin, on the other hand, may indicate that a company is struggling to generate cash from its operations, which could be a warning sign for investors.

When Is It Valuable To Calculate Operating Cash Flow Margin?

Calculating operating cash flow margin is valuable for any business, but it is especially important for companies that are looking to grow or expand. By understanding how efficiently a company is using its cash to generate revenue, business owners can make informed decisions about where to invest their money and how to allocate resources.

For example, if a company has a high operating cash flow margin, it may be able to invest more in research and development or marketing to drive growth. On the other hand, if a company has a low operating cash flow margin, it may need to focus on improving its operations or cutting costs to improve profitability.

Overall, calculating operating cash flow margin is an essential step in understanding your company's financial performance. By monitoring this metric over time, you can identify trends and make informed decisions about how to grow and improve your business.

How Do You Calculate Operating Cash Flow Margin in Epicor

Epicor itself isn’t naturally geared towards letting you calculate complex metrics like Operating Cash Flow Margin. As an alternative, teams typically use products like Arithmix to import data from Epicor 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 Epicor, combine it with data from other systems, and create calculations like Operating Cash Flow Margin.

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 Margin in Arithmix

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

Arithmix is designed to give you the power to build any calculations you want on top of your Epicor 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.