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 ...

Before tax cash flow analysis is a key tool the property investor uses to ensure a healthy bottom line by gauging the return on equity before making an investment. Calculating the cash flow before ...

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 ...

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 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 ...

It doesn’t matter how great your product is or how much profit you show on paper. If you don’t have cash in the bank when you need it, your business is at risk. Too many small business owners focus on ...

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 ...

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 ...

How to value a stock? The main financial analysis techniques are discounted cash flow (DCF analysis) and comparable company analysis (comps). These concepts are used in value investing and calculating ...