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 ...

Ali Hussain has a background that consists of a career in finance with large financial institutions and in journalism covering business. Suzanne is a content marketer, writer, and fact-checker. She ...

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 ...

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 ...

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, ...

Calculating cash flow for real estate matters because it can help you to determine how profitable a rental property investment is likely to be. Looking at how much you could charge in rent for a ...

Discretionary cash flow shows remaining funds after all obligations are met. It's calculated by adjusting pre-tax earnings with specific expenses and incomes. Understanding this can help buyers and ...

This means your business is bringing in more cash than it’s spending. That’s a green flag. It gives you the flexibility to pay your bills on time, invest in growth opportunities, and build a financial ...