Once you determine operating cash flow and capital expenditures, the rest of the equation is simple. You only have to deduct capital expenditures from operating cash flow to arrive at free cash flow.

Operating cash flow is an important measurement to understand. This article will take a closer look at what it is and how it works.

Working capital is the amount of money a company has available to pay its short-term expenses. Cash flow refers to the amount of money flowing in and out of the company.

Learn what free cash flow yield is, how it's calculated, and how it reveals a company's investment appeal by comparing free cash flow per share to market price per share.

The formula looks like this: Free cash flow = operating cash flow – capital expenditures Calculating free cash flow starts with figuring operating cash flow.

Formula Difference in Cash Flow at Beginning of Month vs. End of Month. A company's cash flow, both inflow and outflow, is the result of operating, investing and financing activities.

Non-Operating Cash Flow Some cash flows are not the result of a company's operating activities and thus may be unrelated to its profitability at all.

Liquidity ratios reveal a company's capability to cover short-term debts using available assets. Important types include the cash ratio, quick ratio, current ratio, and operating cash flow ratio ...