Discover why operating cash flow is a more reliable metric than net income for assessing financial health and avoiding accounting manipulation risks.
Two measures used for understanding a company's financial health are EBITDA (earnings before interest, taxes, depreciation, and amortization) and operating income. While both help gauge how well a ...
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 ...