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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

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, ...

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 ...