Hi Hazrienne,
Operating Cash Flow measure the actual cash that the company is collecting from its regular business operations. A company can record net profit of $100 but can have a cash flow of only $60 because the rest of the $40 is recorded as receivables. The company need to take time to collect back the amount from the customer.
You may want to use the cash flow to net income ratio that is taught in the investment quadrant to measure the earnings quality.
