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 ...

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 ...

Troy Segal is an editor and writer. She has 20+ years of experience covering personal finance, wealth management, and business news. Being able to assess a company’s operating cash flow (OCF)—and how ...

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 ...

Cash flow is the changes in the amount of cash a business has on hand. Corporations have to prepare an annual cash flow statement that describes these changes, whether they are due to operating ...

Ali Hussain has a background that consists of a career in finance with large financial institutions and in journalism covering business. Suzanne is a content marketer, writer, and fact-checker. She ...