Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

FCF measures cash available after operational and capital expenditures, crucial for firm's liquidity. Chevron and Nike examples show FCF utility across industries with diverse business models.

Turnover is vanity, profit is sanity, and cash flow is reality. Cash is the lifeblood of a healthy business. Check how you’re doing with our cash flow calculator. Even the most profitable companies ...

Companies that use accrual basis accounting can assemble their statement of cash flows in one of two ways, using either the direct method or the indirect method. The more commonly used indirect method ...

Free Cash Flow (FCF) Margin is a financial metric that measures a company’s ability to generate cash from its operations relative to its revenue. Represented as a percentage, it shows how much free ...

Sunk costs are relevant for determining historical financial data but don't affect determinations of cash flows. By definition, sunk costs are costs that occurred in the past and cannot be changed.

Cash generation is “king” for many investors selecting stocks. Earnings, dividends and asset values may be important factors, but it is ultimately a company’s ability to generate cash that fuels the ...

Cash generation is “king” for many investors selecting stocks. Earnings, dividends and asset values may be important factors, but it is ultimately a company’s ability to generate cash that fuels the ...