Improve Your Cash Flow

The statement of cash flow is almost never used by business owners and CEOs. Yet the investment community and large corporations alike find it is the most critical of the three financial statements.

We begin this class by discussing how to calculate the cash flow from the three main activities of the firm: operations, investing, and financing. We then cover how the ultimate determination of business value is the future cash flows of the firm. We discuss the discounted cash flow method for valuing a company relative to a few other valuation methods.Cash Flow

This class and the course are concluded with a discussion around correctly projecting the future profitability, financial health, and cash flow of the business with the three-statement approach. We give some basic explanations and examples of how companies can use the three statements cohesively in its projections to truly model future decisions and project the results of the firm’s activities.