Dividends are after-tax cash payments to shareholders. The retained-earnings account in the stockholders' equity section of the balance sheet holds the accumulated profits, minus dividend payments.
Cash flow is a measurement of the money moving in and out of a business, and it helps to determine financial health. Many, or all, of the products featured on this page are from our advertising ...
Cash flow is a term you might hear when discussing business, but did you know it pertains to your personal finances, too? Business cash flow refers to incoming and outgoing money in a company, and its ...
Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Andy Smith is a Certified Financial Planner ...
Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.
Cash flow is the changes in the amount of cash a business has on hand. Corporations have to prepare an annual cash flow statement that describes these changes, whether they are due to operating ...
Cash flow from operations is the amount of cash a company generates after adjusting for operating activities. To calculate operating cash flow, combine the company’s net income, non-cash items (like ...
What goes into generating a single dollar of revenue, in your business? Can you accurately define your true operating costs? So many times I’ve heard owners say: “I take my material cost and multiply ...
Three Critical Steps for Sustainable GrowthIn the world of entrepreneurship, we often hear stories of companies reporting huge paper profits, only to fail and declare bankruptcy in the end. This puzzl ...
The cash flow statement reveals a lot about a business that you can't immediately find on the income statement or balance sheet. For example, many companies are profitable on the income statement, ...
The cash flow statement is one of three major financial statements that businesses are required to release. Along with the balance sheet and income statement, the cash flow statement offers good ...