Every business has cash going in and going out. This is cash flow. A cash flow statement accounts for the cash moving in and out of the company. It reflects the cash impacts of revenues, expenses, ...

Discover why operating cash flow is a more reliable metric than net income for assessing financial health and avoiding accounting manipulation risks.

Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...

Cash flow provides important context to information that might not be apparent on other financial statements like a balance sheet or income statement. If a business makes a sale to a customer, that ...

Financial statements report the business activities and financial performance of a company. Learn how they are used by executives, investors, and lenders.

In accounting, the taxes you're going to pay down the road are as important as the ones you're currently writing a check for. Owing a big load of income tax bill affects your firm's financial future, ...

A balance sheet displays what a company owns, what it owes, how it's financed, and its shareholders' equity at a particular point in time. An income statement displays the company's revenues and ...

FCFE shows a company's money left after paying bills, essential for assessing financial health. To calculate FCFE: net income + depreciation - capex - working capital + net debt. Positive FCFE ...

It’s vital for companies and investors to understand cash flow: the money coming into a company and leaving it. To understand this metric at a glance, companies will prepare a cash flow statement.