Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Savvy investors look at a company's financial health before buying its stock. Some investors monitor a company's free cash flow and review its cash flow statements to gauge how well it manages its ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

A small business will be required to prepare a variety of financial statements over the course of a year. Some statements are required by the Securities and Exchange Commission while others might be ...

EBITDA stands for earnings before interest, taxes, depreciation and amortization. EBIT, or earnings before interest and taxes, attempts to equalize earnings by eliminating the effects of income taxes ...

Turnover is vanity, profit is sanity, and cash flow is reality. Cash is the lifeblood of a healthy business. Check how you’re doing with our cash flow calculator. Even the most profitable companies ...

Operating cash flow (OCF) is an important measurement to understand. It’s used to calculate financial success of a company’s critical activities. OCF is the first section portrayed on a cash flow ...

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 ...

The easiest way to understand the way various websites come up with the free cash flow number is to use examples. Some sites back out dividends and others do not. Also, sites vary in terms of what ...

The cash flow statement reveals a lot about a business that you can't immediately find on the income statement or balance sheet. For example, many companies are profitable on the income statement, ...

I recently posted an article in which I compared Netflix (NFLX) and Gamestop (GME) and presented some financial numbers. I received an email from a reader that my calculation for free cash flow for ...