The first fundamental rule of doing business is ensuring a company generates the needed cash to pay for fixed and variable expenses while still turning a profit. Investors use a variety of methods to ...

Cash flow is a term you might hear when discussing business, but did you know it pertains to your personal finances, too? Business cash flow refers to incoming and outgoing money in a company, and its ...

The basic premise of finance is that money has time value -- a dollar in hand today is worth more than a dollar in the future. The study of finance seeks to make it possible to compare the value of a ...

Calculating the internal rate of return, or IRR, of an investment is a powerful tool for businesses. When a manager is faced with a capital intensive decision, IRR can quickly compare the financial ...

Increasing accounts payable can boost a company's cash flow by delaying payments. Higher accounts receivable can reduce cash flow since it involves waiting for customer payments. Review the statement ...

Michael Logan is an experienced writer, producer, and editorial leader. As a journalist, he has extensively covered business and tech news in the U.S. and Asia. He has produced multimedia content that ...

P/CF multiples are calculated with a similar approach to what is used in the other price-based metrics. The P, or price, is simply the current share price of the firm. In order to avoid volatility in ...

When you own a restaurant, it's important to calculate your cash flow each accounting period. Cash flow is crucial for your small business to stay afloat. It helps you pay bills, buy equipment and ...

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 ...

The Discounted Cash Flow (DCF) method stands as a crucial financial analysis approach employed to assess the worth of an investment or a business by considering its anticipated future cash flows. It ...

This means your business is bringing in more cash than it’s spending. That’s a green flag. It gives you the flexibility to pay your bills on time, invest in growth opportunities, and build a financial ...

In accrual accounting, determining exactly how a company generates or burns its cash is not as straightforward as you may expect. Because of the way companies must record their accounts payable and ...