Discover why operating cash flow is a more reliable metric than net income for assessing financial health and avoiding accounting manipulation risks.

The cash flow statement is a clear illustration of the physical cash generated and spent by a company during a specific period of time. The statement provides a clear perspective of the cash a company ...

The Financial Accounting Standards Board's Summary of Statement No. 95 requires a company to report a statement of cash flows as part of its full set of financial statements. Net cash flow from ...

Operating cash flow, or OCF, refers to the amount of cash a company generates from normal business operations over a specific period of time. It’s widely used to evaluate a company’s performance and ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. David Kindness is a Certified Public ...

A written report of the financial condition of a firm. Financial statements include the balance sheet, income statement, statement of changes in net worth and statement of cash flow. The first step in ...

Reviewed by Andy Smith Fact checked by David Rubin Key Takeaways Operating expenses are essential daily business costs, separate from production expenses.Reducing operating expenses can increase ...