What is free cash flow, and how is it calculated?

Q: What about time flows and cash Value money?

A: Money has time value. A rupee today is more valuable than a rupee a year hence. Why? There are…

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: What is the operating cash flow

A: Operating cash flow is also known as cash flow from operations or Cash flow from operating…

Q: What is the cash conversion cycle? What is its equation?

A: The CCC tells firms that in how many days’ firms will realize its cash from its operations. It is a…

Q: What is the present value of the combined cash flows?

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: What does the cash ratio help determine, and how is it calculated?

A: Cash ratio is a liquidity ratio that compares the assets of the company with its current…

Q: What are the discounted cash flow techniques?

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: What is cash flow

A: Cash flow means movement of Cash and cash equivalents in and out of the business.    Cash flows…

Q: What do we mean by a cash flow diagram?

A: Cash is the most important asset for an organisation. The receipt and payment of cash during an…

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What are free cash flows?

A: Companies always estimate cash flows to know the financial conditions of the company because it is a…

Q: Given the following, what is free cash flow?

A: The free cash flow is calculated by deducting the capital expenditure from the cash flow from…

Q: How is IRR calculated with unequal net cash inflows?

A: Definition:   Internal rate of return method (IRR): Internal rate of return method is one of the…

Q: What is net cash flow?

A: Answer: Net cash flow is nothing but the difference between a company’s total cash inflows and total…

Q: What cash flows are discounted in the FCFE model, and what is the discount rate?

A: FCFE MODEL: FCFR is known as free cash flow to equity or levered free cash flow, it is a model…

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

Q: How do I calculate free cash flow?

A: Introduction: FCF or Free Cash Flow is a proportion of the amount of money a business creates in the…

Q: What is the net cash used in financing activities?

A: Net cash used in financing activities is the cash inflow pertaining to financing activities minus…

Q: What is Repayment cash flow?

A: Cash flows play a significant role in companies. It helps companies to identify the liquidity…

Q: Explain Net Income versus Cash Flow?

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: How can we Share Cash Flow from Operations?

A: Cash Flow from Operations is the cash flows from principal revenue generating activities of an…

Q: On what does the interest paid on a cash investment depend?

A: Cash investment An investment (short-term) under which one makes a deposit the cash and also…

Q: What is the significance of the FCF (Free Cash Flow) in the area of valuiation?

A: The cash flow to the business or equity after all debt and other obligations have been paid off is…

Q: Define the term the cumulative cash flow?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: What is the purpose of cash flow analysis?

A: Cash flow Statement: It is prepared by the companies. It is a tool in the hands of users of…

Q: Is Cash Flow more valuable than Accrual Income?

A: Under the accrual system of accounting, the transactions are recorded as and when they accrue…

Q: Is the cash conversion cycle useful and important in financial analysis? Explain

A: The working capital is a short term fund, which is used to meet day to day operational costs of a…

Q: What are the benefits of Relevant Cash-Flow Information?

A:

Q: What factors lead to a better cash flow position? How?

A: Cash flows refer to the amount of net cash and cash equivalents that flow in and out of the…

Q: WHAT DOES THE STATEMENT OF CASH FLOWS SHOW US?

A: Since cash play a vital role in making businees successful. The flow of cash need to be understood…

Q: What is incremental cash flow?

A: Cash flow is the movement of cash in the company. While making an investment in any project, cash…

Q: What is the difference between the net aggregate cash inflow and the net aggregate incomes?

A: The net cash flow of an association speaks to the entirety over some undefined time frame of the…

Q: Which of the following are Cash Outflows from Investing?

A: The cash flow statement shows the cash inflow and cash outflow from the operating activities,…

Q: ations a

A: The growth or decrease in the quantity of money a firm, organisation, or individual has is referred…

Q: How can we obtain the Cash flow from financing activities?

A: Cash Flow Statement forms part of Financial Statements and it comprises three sets of activities…

Q: What are the best startegy for flactuating cash flow?

A: The movement of funds into or out of a business is referred to as cash flow.Inflows are represented…

Q: Explain the term Money Management?

A: Answer: Money in the form of bank notes or coins can be described as a medium of exchange.

Q: Give an example of the Cash-Flow Approach?

A: A cash flow hedge is defined as the transaction done to offset the risks from the variability of the…

Q: What is free cash flow? Why is it the most important measure of cash flow?

A: Free cashflow can be defined as the cashflow that remains in balance after the company has fulfilled…

Q: How do you calculate free cash flow?

A: A free cash flow is the cash flow free from any kind of claim from the stakeholders above you in the…

Q: Why must we convert cash flows to a common basis?

A: In creating a cash flow statements, it is important to translate accumulated net profits to a cash…

Q: What are the benefits to preparing cash flow statement?

A: Benefits of preparing cash flow statement 1. Determination of changes in cash and cash equivalents…

Q: What is the essence of the discounted cash flow methods?

A:

Q: Is Cash Flow more important than  Accrual Based Income?

A: Cash flow: It can be defined as the aggregated balance of cash and cash equivalents that are…

Q: How is payback calculated with unequal net cash inflows?

A: