This would keep the records maintained and help in determining if your business is performing efficiently. Non-operating expenses include things like interest expense, taxes, and one-time gains or losses. Typically speaking, EBITDA should be higher than operating income because it includes income plus interest, taxes, depreciation and amortization. EBITDA offers a more holistic view of…

In particular, compare the amount of this cash flow to a company’s ongoing fixed asset purchasing requirements, to see if it is generating enough cash flow to fund its capital base. But when we move to the investing section of the cash flow, here is where the actual cash spent comes into play. Cash must…