Cash flow is not synonymous with net income. Net income represents the income remaining after accounting for noncash expenses, such as amortization and depreciation, as well as other large asset ...

The free cash flow of a small business determines how much cash the company has left over at the end of the year after accounting for its expenses. Knowing the free cash flow of the small business ...

What Is a Cash Flow Statement (CFS)? A cash flow statement tracks the inflow and outflow of cash, providing insights into a company's financial health and operational efficiency. The CFS measures how ...

Discretionary cash flow shows remaining funds after all obligations are met. It's calculated by adjusting pre-tax earnings with specific expenses and incomes. Understanding this can help buyers and ...

Financial statements are essentially the report cards for businesses. They tell the story, in numbers, about the financial health of the business. The information found on the financial statements of ...

Net income and free cash flow are related but are not the same measure. Net income represents a company's accounting profit, whereas cash flow presents whether a company's cash balance increased or ...

The Discounted Cash Flow (DCF) method stands as a crucial financial analysis approach employed to assess the worth of an investment or a business by considering its anticipated future cash flows. It ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

What goes into generating a single dollar of revenue, in your business? Can you accurately define your true operating costs? So many times I’ve heard owners say: “I take my material cost and multiply ...

Free cash flow yield measures a company's cash generation vs. its market value. A high yield relative to its peers indicates potential undervaluation and a buying opportunity. Consistently high yields ...

Calculating the IRR for a project with an initial outlay and single cash flow is very easy to do. It's also very practical for measuring the returns on investments in collectibles, commodities, ...

How to value a stock? The main financial analysis techniques are discounted cash flow (DCF analysis) and comparable company ...