Which component is NOT part of operating cash flow?

Operating cash flow represents the cash generated by a company's normal business operations. It focuses on the inflow and outflow of cash related to the company's core operating activities.

Capital expenditures, often referred to as CapEx, involve the funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment. These expenditures are not considered part of operating cash flow because they are investing activities rather than operations. They reflect the investment in the future productive capacity of the company, rather than the cash generated or used in operating the business in a given period.

On the other hand, net income is derived from revenues minus expenses and serves as a starting point for calculating operating cash flow. Depreciation and amortization are non-cash expenses that reduce net income but do not affect cash flow, thus they are added back in the cash flow calculation. Change in working capital reflects the cash tied up in inventory and receivables, illustrating the short-term liquidity position tied directly to operations.

Given this context, capital expenditures are distinct from the operating cash flow components.