Brian Feroldi
I demystify the stock market | Author, Speaker, Creator | 100,000+ investors read my free newsletter (see link)
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Cash Flow Statement 101The cash flow statement tracks cash movements in and out of a business.It provides critical information about a company's liquidity, solvency, and financial flexibility. The cash flow statement reconciles the beginning and ending balances of cash over an accounting period. Cash Flow Statements have three major sectors:• Operating Activities• Investing Activities• Financing ActivitiesHere are the major categories of cash inflow & outflow for each section:💡 OPERATING ACTIVITIESINFLOWS• Cash collected from customers• Interest and dividends received• Sale proceeds from trading securitiesOUTFLOWS• Cash paid to employees and suppliers• Cash paid for other expenses• Acquisition of trading securities• Interest paid on debt or leases• Taxes paid💡 INVESTING ACTIVITIESINFLOW• Sale proceeds from fixed assets• Sale proceeds from debt & equity investments• Principal received from loans madeOUTFLOWS• Acquisition of fixed assets• Acquisition of debt & equity investments• Loans made to others to others💡 FINANCING ACTIVITIESINFLOWS• Principal amounts borrowed from others• Proceeds from issuing stockOUTFLOWS:• Principal paid on debt or leases• Payments to reacquire stock• Dividends paid to shareholdersKEY CASH FLOW RATIOS• Free Cash Flow = Cash Flow From Operations - Capital Expenditures• Cash Flow To Revenue = Cash Flow From Operations / Revenue• Cash Return On Assets = Cash Flow From Operations / Average Total AssetsFollow Brian Feroldi for more content like this.***📌 P.S. Want a free eBook that has a handful of my most popular accounting infographics?Grab it here: → https://lnkd.in/eNQcpx-xIf you found this post useful, please repost ♻️ to share with your audience.
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Towns Lending
6d
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Understanding the cash flow statement is crucial for evaluating a company's financial health. 💰
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Amit Kumar
Fractional CFO & Founder | Leveraging AI for Advanced FP&A Strategies | Driving Business Growth with Smart Finance Solutions | Innovator in Tech-Driven Financial Leadership
6d
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Track your cash movements to understand your financial health better. Divide your activities into operating, investing, and financing, and note the inflows and outflows for each.
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Hong Lem
I Help Employees Make Money in Stocks Without Quitting Their Jobs.
6d
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"Financing Activities" is a key section of the Cash Flow Statement for me. It gives you an idea of how the company is allocating capital.
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Jenifer Vergara
CPA | Skilled Remote Bookkeeper & Accountant | QuickBooks Online Proficient | I help service business owners in optimizing their financial performance using QBO.
6d
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Understanding cash flow activities is essential for maintaining financial stability, making sound financial decisions, and ensuring the long-term success of businesses and individuals.
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Bill Fanter
Bank executive with 35 years of experience | Expert options trader | Simplifying high-upside investing so you can break free of the 9-5 | Click the link below to learn how to 2x your value 👇🏻
6d
Brian Feroldi and the fastest way to insolvency is to have more cash going out than you have coming in. I’ll never understand why businesses focus on expense management above revenue generation when cash flow becomes a challenge I’ve always said you can’t save your way to profitability
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Dave Ahern
Helping Simplifying Finance | 17k+investors read our free Nuggets (see link)
6d
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Great post! The cash flow statement can give you so many insights into the management and how they think about reinvesting and capital allocation.
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Aleksandar Stojanović, MSc.
Scaling Tech Startups & SME’s with ARR $1M-$50M | $300K+ in Client Savings | Keynote Speaker | 1:1 Coaching | Fractional CFO | Advisor | Board Member
6d
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Brian, great breakdown! IMO, for SaaS companies, a critical metric is the Cash Flow from Operations to Recurring Revenue Ratio. This ratio provides deeper insight into the efficiency of recurring revenue generation and its conversion into cash flow, a vital aspect for SaaS business sustainability and growth.
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Pratik Asnani
Finance Manager | Driving Sustainable Long-Term Stakeholder Value through Financial Discipline | PMP®
3d
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Cash flow analysis can often reveal hidden issues that may not be apparent just by looking at the income statement or balance sheet. Thanks for sharing this valuable information!
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Woodley B. Preucil, CFA
Senior Managing Director
6d
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Brian Feroldi Very Informative. Thank you for sharing.
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Pete Putros
Education Engineer | Success via Systems and Support
5d
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Cash flow mastery unlocks financial health and growth 💯
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Rodney Horsman
Accountant
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This post by Brian Feroldi brings you a cash flow statement for you perusal.
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Jenifer Vergara
CPA | Skilled Remote Bookkeeper & Accountant | QuickBooks Online Proficient | I help service business owners in optimizing their financial performance using QBO.
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Understanding cash flow activities is essential for maintaining financial stability, making sound financial decisions, and ensuring the long-term success of businesses and individuals.
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#FinanceMaster
32,863 followers
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Cash Flow Statement 101 (by Brian Feroldi).The cash flow statement tracks cash movements in and out of a business.It provides critical information about a company's liquidity, solvency, and financial flexibility. The cash flow statement reconciles the beginning and ending balances of cash over an accounting period. Cash Flow Statements have three major sectors:• Operating Activities• Investing Activities• Financing ActivitiesHere are the major categories of cash inflow & outflow for each section:💡 OPERATING ACTIVITIESINFLOWS• Cash collected from customers• Interest and dividends received• Sale proceeds from trading securities OUTFLOWS• Cash paid to employees and suppliers• Cash paid for other expenses• Acquisition of trading securities• Interest paid on debt or leases• Taxes paid 💡 INVESTING ACTIVITIESINFLOW• Sale proceeds from fixed assets• Sale proceeds from debt & equity investments• Principal received from loans made OUTFLOWS• Acquisition of fixed assets• Acquisition of debt & equity investments• Loans made to others to others💡 FINANCING ACTIVITIESINFLOWS• Principal amounts borrowed from others• Proceeds from issuing stock OUTFLOWS:• Principal paid on debt or leases• Payments to reacquire stock• Dividends paid to shareholders KEY CASH FLOW RATIOS• Free Cash Flow = Cash Flow From Operations - Capital Expenditures• Cash Flow To Revenue = Cash Flow From Operations / Revenue• Cash Return On Assets = Cash Flow From Operations / Average Total Assets----------Learn more about the latest trends in finance and accounting by listening to the FinanceMasterPodcast here:https://bit.ly/3NLSt73Or download guides and cheat sheets about finance and accountinghere:https://lnkd.in/eC_zuCU4
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Panicos Euripides
Project Management Services - Providing Strategic & Operational Direction to Enterprises Striving to Achieve Maximum Performance
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EBITDA and cash flow are crucial financial metrics, but they serve different purposes. EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, focuses on operating profitability, while cash flow provides a more comprehensive view of a company's liquidity and ability to generate actual cash. Both metrics are valuable, but it's essential to use them in conjunction to assess a business's financial health accurately.
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FinTech4Funds
1,611 followers
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Because we love sharing, here is a brilliant example of infographics that you can use as a tool to understand the the difference between EBITDA & Cash Flow! #financeandeconomy #investing #portfoliomanagement
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Louis Quartochi
Vice President of Operations - Suncakes, LLC.
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Great tool and helps clean up a number of potential "speedbumps" that tend to slow down growth/progress! Oana always shares great info as well as insight!#restaurant #entrepreneur #finance #business #training #advancement #hiring #careers
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Helena Carell
CEO Airtarget
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a smart overview of EBITA and cash flow
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ARUN C M, CMA
Certified Management Accountant (US) | Accountant at Evas International Management Consultants | Former Manager at Axis Bank Ltd.
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A quick analysis of EBITDA vs Cash Flow statement.
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Laura Voinea
Tech Recruitment | Coaching | Helping start-ups & established businesses thrive
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Great cheat sheet! #EBITDA #cashflow #profit #businessmanagement #keyindicators
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Kelvin Kong
Crypto/Blockchain/Web3.0/Metaverse Wizard & Startup Angel Investor | former APAC General Counsel & Recruiter | Loves to Make Friends & Network - ADD ME to Connect :)
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EBITDA vs Cash Flow
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