What type of charges can contribute to positive operating cash flow despite a net loss?

Noncash charges like depreciation contribute to positive operating cash flow even when there is a net loss because they are expenses that reduce net income without actually affecting cash flows. Depreciation represents the allocation of the cost of tangible assets over their useful lives. While it is recorded as an expense on the income statement, it does not involve an actual cash outflow during the period in which it is recorded.

Since operating cash flow reflects cash generated from core business activities, adding back noncash expenses like depreciation to net income helps to provide a clearer picture of cash position. This adjustment acknowledges that the business has incurred costs that reduce net income but did not result in an immediate cash expense. Thus, even in situations where a company reports a net loss, the inclusion of these noncash charges can lead to a positive operating cash flow, which is crucial for assessing the company's liquidity and ability to fund operations.