Operating Cash Flow Calculator
Profitable but broke, quantified.
Operating cash flow
$57,000
against $84,000 of profit
Cash is $27,000 below profit because growth absorbed it into stock and receivables. That gap is what "profitable but broke" means, and it widens as growth accelerates.
How the Operating Cash Flow Calculator works
Cash below profit means growth absorbed it into stock and receivables. That gap is what 'profitable but broke' means, and it widens as growth accelerates — which is why fast-growing businesses run out of money.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
Why is cash flow different from profit?
Profit is recognised when a sale is made; cash moves when money changes hands. Buying stock reduces cash and not profit; selling on credit raises profit and not cash.
How do I calculate operating cash flow?
Net profit, plus non-cash charges such as depreciation, less the increase in working capital. The last term is what growth absorbs.
Why does growth consume cash?
Because stock and receivables grow with the business and both have to be funded before the corresponding revenue arrives. Faster growth means a larger gap.
Can cash exceed profit?
Yes — when stock is being run down or suppliers are funding more of the business. Both are finite, so a persistent excess is worth understanding rather than celebrating.