Cash flow return on investment (CFROI) is a valuation model that considers the current state of liquidity flow, with the yield needing to exceed the company’s internal hurdle rate for the security’s price to be attractive to investors. CFROI has proponents and detractors, with some believing it only identifies factors that determine the market price. […]
The statement of cash flows reports a company’s cash sources and use, with three sections for operating, investing, and financing activities. Financing activities include borrowing, issuing shares, and debt repayment, with cash inflows and outflows reported monthly. Non-cash items are reported separately. The statement of cash flows reports the sources and use of a company’s […]
Capital flows refer to the movement of money in investing, trading, and business operations. Companies analyze capital expenditures and cash flow to determine return on investment. Governments monitor various measurable flows to assess the economy’s health and allocate funds for goods and services. Adjustments can be made to shift the flow of money towards more […]
A company’s flow statement shows the actual movement of funds through its doors, revealing sources of income and expenditure. It can provide valuable information on a company’s financial situation and can be compared with other financial statements. Maintaining a positive flow is beneficial for personal finances. A flow of the bottom is a reflection of […]
