Cash Flow & Investment Analysis
Earnings power, cash generation, and the time value of money.
This group covers the earnings and cash-flow figures that underpin fundamental analysis, plus the time-value-of-money concepts used to evaluate investments. Measures like EBIT, EBITDA, and free cash flow strip financials down to operating performance, while present value, real return, and risk premium frame how future cash flows are worth today. They connect a company's operations to what an investment is actually worth.
Put these metrics to work
Screen stocks by cash flow16 terms in this topic
Free cash flow
The cash a company generates after accounting for capital expenditures, representing cash available for expansion, dividends, or debt reduction.
EBIT
Earnings Before Interest and Taxes, a measure of operating profitability that excludes the effects of capital structure and tax rates.
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization, an indicator of operational profitability excluding non-cash expenses and financing costs.
Revenue
The total income generated from normal business operations, calculated as the sale price multiplied by quantity sold, also called sales or turnover.
Inventory turnover ratio
An efficiency ratio showing how many times inventory is sold and replaced over a period, calculated as cost of goods sold divided by average inventory.
Payback period
The time required to recover the initial investment in a project, calculated by dividing the initial investment by annual cash inflows.
Present value
The current worth of a future sum of money or stream of cash flows given a specified rate of return, accounting for the time value of money.
Real rate of return
The annual percentage return on an investment adjusted for inflation, representing the actual increase in purchasing power.
Risk premium
The return in excess of the risk-free rate that an investment is expected to yield, compensating investors for taking on additional risk.
Inflation rate
The rate at which the general level of prices for goods and services rises, eroding purchasing power, typically measured annually.
Operating cash flow
The cash a company generates from its core business operations, calculated as net income adjusted for non-cash items and changes in working capital.
Capital expenditures (CapEx)
Cash a company spends to buy, upgrade, or maintain long-term physical assets such as property, plants, and equipment, reported in the cash flow statement.
Beta
A measure of a stock's volatility relative to the overall market, where 1.0 moves in line with the market and higher values indicate larger price swings.
Expense ratio
The annual fee a fund charges as a percentage of assets, covering management and operating costs, deducted from fund returns before investors receive them.
Assets under management (AUM)
The total market value of the investments a fund or asset manager holds on behalf of investors, a common measure of a fund's size.
Net asset value (NAV)
The per-share value of a fund's holdings, calculated as total assets minus liabilities divided by shares outstanding, used to price mutual funds and track ETFs.