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The cash flow statement (previously known as the flow of funds statement), shows the sources of a company's cash flow and how it was used over a specific time period. It is an important indicator of a company's financial health, because a company can report a profit on its income statement , but at the same time have insufficient cash to operate.
Operating cash flow. In financial accounting, operating cash flow (OCF), cash flow provided by operations, cash flow from operating activities (CFO) or free cash flow from operations (FCFO), refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term investment on capital items or ...
t. e. Cash flow, in general, refers to payments made into or out of a business, project, or financial product. [1] It can also refer more specifically to a real or virtual movement of money. Cash flow, in its narrow sense, is a payment (in a currency), especially from one central bank account to another. The term 'cash flow' is mostly used to ...
e. Cash flow forecasting is the process of obtaining an estimate of a company's future cash levels, and its financial position more generally. [1] A cash flow forecast is a key financial management tool, both for large corporates, and for smaller entrepreneurial businesses. The forecast is typically based on anticipated payments and receivables.
The price/cash flow ratio (also called price-to-cash flow ratio or P/CF), is a ratio used to compare a company's market value to its cash flow.It is calculated by dividing the company's market cap by the company's operating cash flow in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the per-share operating cash flow.
A cash-flow diagram is a financial tool used to represent the cashflows associated with a security, "project", or business. As per the graphics, cash flow diagrams are widely used in structuring and analyzing securities, particularly swaps. They may also be used to represent payment schedules for bonds, mortgages and other types of loans.
Discounted cash flow. The discounted cash flow (DCF) analysis, in financial analysis, is a method used to value a security, project, company, or asset, that incorporates the time value of money. Discounted cash flow analysis is widely used in investment finance, real estate development, corporate financial management, and patent valuation.
Free cash flow. In financial accounting, free cash flow (FCF) or free cash flow to firm (FCFF) is the amount by which a business's operating cash flow exceeds its working capital needs and expenditures on fixed assets (known as capital expenditures). [1] It is that portion of cash flow that can be extracted from a company and distributed to ...