Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
12 Cards in this Set
- Front
- Back
|
Operational Cash Flow
|
Earning Before Income and Taxes +Depreciation - Taxes
OCF = EBIT + Depreciation - Taxes |
|
|
Net Capital Spending
|
The money spent on fixed assets less money received from the sale of fixed assets.
NCS = ΔFA + Depr ΔFA = FA2-FA1 |
|
|
ΔNet Working Capital
|
This years working capital less last years.
ΔNWC = [CA2 - CL2] - [CA1-CL1] |
|
|
Cash Flow From Assets
|
Both the difference between
Operation Cash Flow - Net Capital Spending - the change in Net Working Capital. CFFA = OCF - NCS - ΔNWC and the Cash Flow to Creditors plus Cash Flow to Shareholders. CFFA = CFC + CFS |
|
|
Cash Flow to Creditors
|
The interest payments less the change in Long Term Liabilites.
CFC = Interest Payment - ΔLTL |
|
|
Cash Flow to Shareholders
|
Dividends less the change in equity.
CFS = Dividends - ΔR/E |
|
|
Earnings Before Income Taxes
|
Found on the Income Statement
|
|
|
Fixed Assets
|
All assets that have a future value longer than one year.
|
|
|
Current Assets
|
All assets that have a future value of less than one year.
|
|
|
Current Liabilities
|
All liabilities that must be pain in the next year.
|
|
|
Long Term Liabilities
|
All liabilities that have a life of greater than one year.
|
|
|
Retained Earnings
|
The book value of the company.
|
