Learning how to calculate cash flow is an important practice for your small business. Here's a simple, step-by-step process on how to calculate cash flow.

How to Calculate a Company's Cash Flow. The first fundamental of doing business is ensuring a company generates the needed cash to pay for fixed and variable expenses while still turning a profit.

If you have quarterly cash flow, multiply it by 4. In the example, you have monthly cash flow, so multiply $1,200 by 12 to get $14,400 in annualized cash flow.

Find out more about free cash flow, the formula for calculating free cash flow, and how to calculate a company's free cash flow using Microsoft Excel.

Calculating discretionary cash flow To calculate discretionary cash flow, start with the company's pre-tax earnings. Next, add back in all non-operating expenses and subtract non-operating income.

To calculate the present value of any cash flow, you need the formula below: Present value = Expected Cash Flow ÷ (1+Discount Rate)^Number of periods Thus, for year one, the math would look like ...

Taxes are involved with the calculations for a firm’s operating cash flow, and operating cash flow after taxes is an important metric to investors interested in a corporation’s ability to pay ...

Learn how one business avoided disaster, and increased cash flow by adjusting to their true operating costs, and how you can too!

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