Start by looking at cash flow from operations, the section that tells you how much money the company’s main business is ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Operating cash flow (OCF) is an important measurement to understand. It’s used to calculate financial success of a company’s critical activities. OCF is the first section portrayed on a cash flow ...

Discover key elements that reduce operating cash flow, including declining net income, inefficient inventory turnover, and ...

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 ...

Positive cash flow is critical to a successful business. Business owners may understand the importance of generating profits; however, focusing on profit alone may lead to the neglect of cash flow.

Financial statements provide a wealth of information about a company and its operations. Many investors, analysts, and creditors refer to a firm’s net income and operating cash flows to understand how ...