6/5/2023 0 Comments What is cashflow![]() A firm with large amounts of new investments and corresponding high depreciation charges might report low or negative earnings at the same time it has large cash flows to service debt and to acquire additional assets. Reduced income generally means lower taxes and more cash, thus the same accounting practices that reduce net income can actually increase cash flow. On the other hand, reported net income is heavily influenced by a firm's accounting practices. Increased cash flow means more funds are available to pay dividends, service or reduce debt, and invest in new assets. Case Study Financial analysts generally consider cash flow to be the best measure of a company's financial health.
0 Comments
Leave a Reply. |