Cash Flow From Assets Equation

The net amount of cash and cash-equivalents moving into and out of a business is termed as cash flow. The cash flows are often transformed into measures that give information. Operating cash-flow measures the cash flows generated by the firm's main operations. Cash flow from assets is the total cash flow to creditors and cash flow to stockholders. Determine the cash flow of the firm or any organization using this simple cash flow from assets equation.

Formula:

Cash Flow From Assets = r + s


Where,

r = Cash Flow to Creditors
s = Cash Flow to Stockholders

Related Calculator:

As per cash flow from assets equation, cash flow of the firm equals cash flow to creditors plus cash flow to stockholders. Cash flow from assets is considered as an important factor in analysing a company's profile.


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