For companies in competitive industries it can mean high investment levels to defend market share and even higher levels to expand share. That means it is a source of short-term financing. Its amount generally will vary with the level of sales. There are a number of measures we can use to help us analyze a company's sources and uses of cash, its reasons for borrowing and its ability to repay debt. But keep in mind that the terminology for cash flows is not standardized.
Analysts often use different terms to describe similar measures.
It is net income adjusted for non-cash items other than net working capital items. This is a standard term from the statement of cash flows. Management has more direct control over some cash flows than others. Cash Flow from Operations is the result of a combination of factors. From year to year management has the most discretion over the continuing investment it plans to make in its business and financial strategies.