Operating Cash Flow: Cash generated from the operations of a company, generally defined as revenues less all operating expenses, but calculated through a series of adjustments to net income.

Operating Cash Flow (OCF) is a measure in accounting and corporate finance that represents the cash generated from a company's regular business operations. It provides a clear picture of the company's ability to generate sufficient cash to maintain and grow its operations, as well as pay off its short-term liabilities. The key elements to understand about Operating Cash Flow are:

1. Calculation: It is generally calculated by adjusting net income for non-cash items (such as depreciation) and changes in working capital. The formula is: Operating Cash Flow = Net Income + Non-cash items + Changes in Working Capital.
2. Indication of Financial Health: OCF is an important indicator of a company's financial health. A positive OCF means the company is able to generate more than enough cash from its operations to sustain its business. A negative OCF, on the other hand, could be a sign of trouble as it indicates the company's core operations aren't producing enough cash.
3. Cash vs. Profit: Unlike net profit, the OCF doesn't include non-cash expenses, making it a more accurate measure of how much cash a company actually has on hand to cover its bills, invest back into the business, or return to its shareholders.
4. Investor Interest: Investors keep a close eye on OCF as it provides a more accurate picture of a company's cash flow situation than earnings or net income. This is because it is harder to manipulate cash flow numbers than earnings, making OCF a more reliable measure of profitability.
5. Impact on Other Financial Ratios: Operating Cash Flow is also used in the calculation of several other important financial ratios, including the cash flow margin, which is operating cash flow divided by sales revenue, and the operating cash flow ratio, which is operating cash flow divided by total debt.

Understanding Operating Cash Flow is crucial in corporate finance and accounting as it offers an in-depth look into a company's financial health and operational efficiency. It is a valuable tool for management, investors, and creditors.

Operating Cash Flow is a paramount financial metric to monitor due to several reasons:

1. Financial Health Indicator: OCF serves as a direct reflection of the company's financial health. It accurately portrays the amount of cash generated by a company's core business operations, without being influenced by accounting conventions or non-cash items such as depreciation. Hence, it provides a clear view of the financial health of the business.
2. Sustainability Measure: It is an excellent measure of the sustainability of a company's operations. A consistently positive OCF signifies that a company is able to generate enough cash to cover its operational costs, which is a robust sign of operational efficiency.
3. Investor Confidence: Investors and creditors often prefer OCF over profits as a measure of return since it is less likely to be manipulated through accounting practices. A strong OCF can boost investor confidence and potentially lead to increased investments.
4. Short-term Solvency Check: OCF provides a clear picture of the company's ability to pay off its current liabilities. A company with a high OCF is less likely to face liquidity issues, allowing it to meet its short-term obligations comfortably.
5. Future Growth Indicator: Lastly, OCF can offer insights into the company's future growth prospects. Companies with higher OCF have more cash at their disposal to invest in new projects, acquisitions, and other growth opportunities, making it a critical metric to monitor in corporate finance and accounting.

In summary, Operating Cash Flow is a crucial factor to monitor as it provides a more transparent and holistic view of a company's financial performance and long-term stability.