Cash flow, a measure of inflows and outflows, is one of the best ways to gauge a company’s short-term financial health. The name says it all: Cash flow refers to the movement of cash into and ...

Sabrina Jiang / Investopedia The income statement and balance sheet can also be used to calculate FCF. Other factors from the income statement, balance sheet, and statement of cash flows can be ...

Before we look more specifically at taxes, let's take some time to look at operating cash flow at a high level. The calculation of OCF starts with net income, which is the profit a company earns ...

If a business pays income taxes or pays interest on its debt, those amounts are typically not included in the cash flow calculation but are listed on the cash flow statement in a separate section.

Example of a Free Cash Flow Calculation The terms from an equation can look confusing if you haven't tried out the equation. This example will help you get a better understanding of how to ...

In this category, the company spent $91,400 more than it brought in, making that number its net cash flow from investing. Also note that information in this section can be used to calculate free ...