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On earnings and cash flows as predictors of future cash flows

Journal of Accounting and Economics, 2021
Do accruals-based earnings provide better information about future operating cash flows than do operating cash flows themselves, as predicted by the Financial Accounting Standards Board's conceptual framework (FASB 1978)? While this is a foundational issue in accounting, because it addresses the information added by accrual accounting methods, testing ...
Ray Ball, Valeri V. Nikolaev
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The Cash Flow Sensitivity of Cash

The Journal of Finance, 2003
We use the link between financial constraints and a firm's demand for liquidity to develop a new test of the effect of financial constraints on firm policies. The effect of financial constraints can be captured by a firm's propensity to save cash out of incremental cash inflows (the "cash flow sensitivity of cash").
Heitor Almeida   +2 more
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Cash Flows

2021
This chapter evaluates the statement of cash flows, which gives a detailed breakdown of cash inflows and outflows during the year, split between the three main activities of the business: operating, investing, and financing. The totals of these are added together to get a net cash flow figure for the year, which is finally added to the opening cash ...
Jimmy Winfield   +2 more
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Net working capital, cash flow and performance of UK SMEs [PDF]

open access: yesReview of Accounting and Finance, 2016
Purpose: - This paper aims to examine the influence of cash flow on the relationship between net working capital and firm performance. Design/methodology/approach - The paper uses unbalanced panel data regression analysis on a sample of 6,926 non ...
Godfred Adjapong Afrifa
exaly   +2 more sources

Cash Flow Management

Archives of Ophthalmology, 1993
In the face of decreasing reimbursement and increasing expenses, careful cash flow management has assumed an increasingly important role in developing and maintaining a successful ophthalmology practice. Funds must be collected as promptly and efficiently as possible, and retained and invested until needed by the practice to pay expenses.
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Cash Flows in Networks

Management Science, 1970
The concept of maximising present value is applied to the timing of activities in a network. The mathematical form of the problem is that of maximising a nonlinear function subject to linear constraints and can be solved as a succession of linear programmes.
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The Persistence of Cash Flow Components into Future Cash Flows

2004
We examine the persistence of cash flow components in predicting future cash flows. In this study, we evaluate six cash flow components (which parallels the direct method of the cash flow statement): cash flows related to sales, cost of goods sold, operating expenses, interest, taxes, and other.
Agnes Cheng, Dana Hollie
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The Statement of Cash Flows

2018
This chapter looks at the statement of cash flows, which presents users of financial information with details of cash inflows and outflows for an accounting period. It shows how the statement of cash flows links together the statement of profit or loss and the statement of financial position to demonstrate changes in an entity's financial position over
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The Correct Definition for the Cash Flows to Value a Firm (Free Cash Flow and Cash Flow to Equity)

2004
Surprisingly there is a wide range of interpretations on how to calculate the cash flows for valuation purposes. This ample definition of what the cash flows are is shared by academicians and practitioners. Some of the definitions openly contradict the essential and basic concepts of cash flow and time value of money.
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