Definition
Net operating cash flow is similar to gross operating cash flow with the difference that it takes into account interest and tax charges which are themselves influenced by your financial structure (level of indebtedness).
Interpretation
Like the gross operating cash flow, the net operating cash flow must be positive and sufficient to enable you to renew your equipment regularly and meet your loan repayments.
Calculation
Net operating cash flow is calculated by subtracting financial expenses (loan interest) and corporate income tax from gross operating cash flow.
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