Cash flow
Contents
- 1 What Is Cash Flow?
- 2 Understanding Cash Flow
- 3 Key Takeaways
- 4 Special Considerations
- 5 Types of Cash Flow
- 6 How to Analyze Cash Flows
- 7 How Are Cash Flows Different Than Revenues?
- 8 What Are the Three Categories of Cash Flows?
- 9 What Is Free Cash Flow and Why Is It Important?
- 10 Do Companies Need to Report a Cash Flow Statement?
- 11 Why Is the Price-to-Cash Flows Ratio Used?
What Is Cash Flow?
The term cash flow refers to the net amount of cash and cash equivalents being transferred in and out of a company. Cash received represents inflows, while money spent represents outflows. A company’s ability to create value for shareholders is fundamentally determined by its ability to generate positive cash flows or, more specifically, to maximize long-term free cash flow (FCF). FCF is the cash generated by a company from its normal business operations after subtracting any money spent on capital expenditures (CapEx).
Understanding Cash Flow
Key Takeaways
Special Considerations
Types of Cash Flow
Cash Flows From Operations (CFO)
