The income statement provides a breakdown of sales and expenses, and these can be made or paid with either cash or credit. Because of certain accounting conventions aimed at matching sales and ...

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...

Cash flow is an important consideration for any business. It measures the amount of money that flows into and out of a business, without considering the value of the business or its level of debt.

Cash flow is a measurement of the money moving in and out of a business. It helps to determine financial health. Many, or all, of the products featured on this page are from our advertising partners ...

Find out what to include in a cash flow statement, as well as its limitations and how cash flow is calculated.

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 ...

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 ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Being able to assess a company’s operating cash flow (OCF)—and how ...

Perhaps the best picture of a company's current finances, discretionary cash flow refers to the portion of revenue a company has left after all mandatory payments, such as wages, are paid, and all ...