Cash flow analysis is an important aspect of a company's financial management because it reveals the cash it has available to pay bills and invest in its business. The analysis goes beyond accounting ...

A written cash flow plan is often a business’s first experience with trying to determine its cash flow. Over time, you’ll find reasons to do a cash flow plan on a weekly, monthly, quarterly and annual ...

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 ...

As business owners, we all know it’s true: Cash is king! Without it, your business couldn’t survive. That’s because you need cash to operate and grow your business. How else will you ensure you’re ...

Basic-Fit is Europe's leading fitness chain, generating strong free cash flow despite significant growth CAPEX, making it an undervalued stock for long-term investors. The company leverages its size ...

Increasing expense accruals, or accrued expenses, helps companies conserve cash at the time they incur an expense. Using accrual-basis accounting, companies record expenses when incurred but don't ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Discover what discretionary cash flow is, its uses in business valuation, and how it reflects a company’s financial health through wise management and investment.

FASB ISSUED CONCEPTS STATEMENT NO. 7 TO HELP CPAs who use present value and cash flow information as the basis for accounting measurements. Using Cash Flow Information and Present Value in Accounting ...

While every public company uses accrual basis accounting in its financial reporting, it’s not the only bookkeeping standard out there. Cash basis accounting also has practical applications in business ...

Accrual basis accounting records revenue once the source transaction is complete, once its numerical value can be calculated and once there is no doubt that the sum can be collected. Furthermore, ...