In financial accounting, “cash flow” refers to the statement of cash flows, a required report under generally accepted accounting principles (GAAP). This statement shows the inflow and outflow of actual cash (or cash-like assets) from operating,…

What is ‘Cash Flow From Investing Activities’ Cash flow from investing activities is an item on the cash flow statement that reports the aggregate change in a company’s cash position…

Cash flow and free cash flow are both important financial metrics used to determine the liquidity of a company. However, there are distinct differences between the two that allows investors to see…

What is ‘Operating Cash Flow (OCF)’ Operating cash flow is a measure of the amount of cash generated by a company’s normal business operations. Operating cash flow indicates whether a…

It’s a forgone conclusion for some Americans that after their senior year of high school, they will leave home and attend a four-year college. In the face of the rising…

When it comes to financial statement analysis, many people tend to focus their attention on a company’s income statement when determining whether a firm is profitable or financially healthy. However, it is…

What are ‘Non-Operating Cash Flows’ Non-operating cash flows are inflows and outflows of cash that are not related to the day-to-day, ongoing operations of a business. These cash flows are…

The free cash flow/operating cash flow ratio measures the relationship between free cash flow and operating cash flow. Free cash flow is most often defined as operating cash flow minus capital expenditures,…