This indicator values in absolute terms the monetary outcome of the company’s management over the year. 

 

Cash Flow main pillars

Revenues is the increase in capital arising from the sale of merchandise or the performance of services. When revenue is earned, it results in an increase in either cash (money received) or accounts receivable (amount owed to Your company by Customers).

Expenses decrease capital and result from performing activities necessary to generate revenue. The expenses is either equal to the cost of the goods solds or the expanditure necessary to conduct business operations (rent expenses, salary expense, depreciation expense) during the period.   

 

As it is, because of "revenues" does not necessarily mean receipt of cash and on the other hands "expense" does not automatically imply a cash payments.

So that, the Cash Flow can be represented in the value of EBITDA (Earning Before Interests, Tax, Depreciations, Amortization) that comes from the analysis of the financial statements It values is the sum of the operating net profit and the non-monetary costs minus non-monetary revenues 

 

Studio Lupini srl
Via Don Rosmini, 4
21052 Busto Arsizio (VA) IT
MAIL: info@studiolupini.it
VAT:  IT 03611190129
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