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Here’s what you need to know about calculating free cash flow and other components of a cash flow statement: — Calculation of free cash flow. — Example of a free cash flow calculation.
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.
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 ...
What Are Some Examples of Cash Flow Strategies?. Poor cash flow has been the bane of many small businesses, because they often aren't able to keep large amounts of cash on hand to fund revenue ...
Free cash flow and operating cash flow are both useful when comparing competitors. Here's a look at how analysts use them to evaluate a company's performance.
Cash flow seems like a simple concept for most businesses, but it can be extremely complicated when you break down a company's financial health.
Cash flow is often about trade-offs. Spending too cautiously may slow down growth, but overspending creates risk. The balance lies in making small, steady investments while keeping core expenses ...
Free cash flow to equity holders, for example, is calculated differently than cash flow to stakeholders, which is different from a simple summation of the various cash flows on the cash flow ...
A Bond's Negative Impact on a Cash Flow Statement. A bond is a financial instrument a company uses to borrow money. A company issues bonds to investors in exchange for cash and promises to repay ...
Founders who focus on vision alignment, team autonomy and financial discipline can build companies that thrive without their ...