Operating Activities

A company’s operating activities refers to all the activities it carries out as part of its core day-to-day operations (production, manufacturing, procurement, investing in inventory), as opposed to non-operating activities that may be substantial but which cannot be considered part of the day-to-day (such as the sale or purchase of machinery, equipment, land, property or M&A or divestments). Investors like to split operating and non-operating components of a business in order to gauge the underlying performance of a company’s operations.