The income statement provides a breakdown of sales and expenses, and these can be made or paid with either cash or credit. Because of certain accounting conventions aimed at matching sales and ...

The net present value, or NPV, is a figure that project managers use to analyze a project's financial strength. You can find the NPV from a discounted cash flow analysis, which assesses future cash ...

The basic premise of finance is that money has time value -- a dollar in hand today is worth more than a dollar in the future. The study of finance seeks to make it possible to compare the value of a ...

What Is Levered Free Cash Flow (LFCF)? Levered free cash flow (LFCF) is the amount of money that a company has left remaining after paying all of its financial obligations. LFCF is the amount of cash ...

Discretionary cash flow shows remaining funds after all obligations are met. It's calculated by adjusting pre-tax earnings with specific expenses and incomes. Understanding this can help buyers and ...

I recently posted an article in which I compared Netflix (NFLX) and Gamestop (GME) and presented some financial numbers. I received an email from a reader that my calculation for free cash flow for ...

Calculate the present value of each year's cash flow by dividing by (1 + discount rate)^number of years. Sum all present values to find the total value of projected cash flows, which in this example ...

Perhaps the best picture of a company's current finances, discretionary cash flow refers to the portion of revenue a company has left after all mandatory payments, such as wages, are paid, and all ...