A firm’s free cash flow (FCFF) is the cash flow from operations available for distribution after accounting for depreciation, taxes, working capital and investments.
Free cash flow is perhaps the most important financial measure of a company’s stock value.
A positive FCFF indicates that the firm has cash left after spending.
A negative value indicates that the firm has not received sufficient income to cover its expenses and investment activities.
Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.
Adjusting journal entries are used to record transactions that have occurred but have not yet been properly accounted for in accordance with the accrual basis.
The annual report is a corporate document distributed to shareholders, which sets out the financial position and activities of the company for the previous year.
An asset is a resource with economic value that is owned or managed by an individual, corporation or country with the expectation that it will provide benefits in the future.