I spent last week in the Big Apple and Hollywood working with NBCUniversal. These training sessions are always great. For the last three years twice a year I do 2 days of training in New York and 1 day in Burbank, California. In the evenings NBCU always has a reception with a financial executive speaking. This program is called Invest and it is one of the best organized financial training programs I have seen in my years of training. I love working with the NBCUniversal team.
It is a great idea to have an actual executive speaker after I have taught the attendees basics. You can tell the students have benefited from the learning by the questions in these sessions. The students in these classes are inquisitive which make the days fly by.
The discussions at NBCUniversal often focuses in a metric they call OCF. After being acquired by Comcast, OCF has been the key number that these business leaders are measured by. Comcast shows this metric prominently in its quarterly press releases. OCF stands for operating cash flow. Operating cash flow is found in the top section of the statement of cash flows. The operating cash flow metric represents cash coming into a business through selling a product or service and the cash going out to pay for the labors and other expenses to make and deliver that product or service. What is interesting with the Comcast/NBCUniversal OCF metric is that it is really EBITDA which is a number taken directly from the income statement. EBITDA is considered an indication of operating cash flow. For a manager EBITDA is much easier to understand and track but it is potential operating cash flow not actual operating cash flow.
The OCF metric can be confusing to students in these classes but once they understand the connection to the income statement it makes sense. Furthermore EBITDA/OCF is a number that they affect and can follow on a monthly or even weekly basis. I think using this metric makes good sense but calling it OCF rather than EBITDA can be confusing.
On the New York trip I invited my three oldest sisters along for some NYC time. We went to the Broadway show Beautiful about the life and music of Carol King. A must see for anyone into music of the 70’s. We also hit the Union Square Café, a New York landmark restaurant closing down and moving at the end of 2015 due to rent increases in the Union Square area. This restaurant always has great service and food. If you want to go you have less than three months, make your reservations ASAP.