Operating cash flow: Definition, Formula & Why It Matters
Also called: Cash flow from operations
Operating cash flow is the actual cash moving in and out of your shop from selling gear: payouts received minus what you spend on inventory, shipping, and expenses. It can differ sharply from profit because of timing, and it is what keeps you able to buy your next piece.
Operating cash flow formula
Example
A profitable month can still be cash-negative if you reinvested every payout into new inventory.
Why it matters for Reverb sellers
Profit is an accounting number; cash is what actually lets you restock and pay bills. Many growing shops are profitable on paper yet cash-strapped because their money is tied up in inventory.
How Verbstack helps
Verbstack tracks cash in and out so you can plan purchases around what you can actually afford.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
Free forever to get started. No credit card required.
Related terms
See this number on every order.
Connect your Reverb shop and Verbstack tracks your fees, margins, and profit automatically.
Get started freeFree forever to get started. No credit card required.