The first fundamental rule of doing business is ensuring a company generates the needed cash to pay for fixed and variable expenses while still turning a profit. Investors use a variety of methods to ...

The cash flow statement reveals a lot about a business that you can't immediately find on the income statement or balance sheet. For example, many companies are profitable on the income statement, ...

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 ...

Some readers have emailed me with questions about exactly how to calculate free cash flow, including: Do you include changes in working capital? Do you really have to use SEC reports instead 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 ...

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 ...

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 ...

Free cash flow to equity is one method for assessing a company's financial health and can be used in more complex analyses. Read on to learn more.

Cash flow from operations is the amount of cash a company generates after adjusting for operating activities. To calculate operating cash flow, combine the company’s net income, non-cash items (like ...

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 ...