Calculating cash flow is arguably the most important part of analyzing a business. You cannot pay anything with a profit, while a positive cash flow ensures that there is room for new investments and a dividend. Also takeovers, repayments of debts and the buyback of own shares cannot be done with profit, but only with cash.
In this article I explain how to calculate the cash flow, what the cash flow means and how you can apply it in the analysis of a company or stock:
- Cash flow meaning (Positive cash flow & Negative cash flow)
- Cash flow overview
- Difference cash flow & profit
- Calculate cash flow
- Cash flow formula
- Cash flow forecast
- Conclusion
