Free cash how is often considered a more reliable measure of a company's income than reported earnings. What are same possible ways that corporate accountants might be able to change their earnings to portray a more favorable earnings statement?
Free cash flow is the lifeblood of any company and is the only true way to measure how much cash a company is generating. Free cash flow is, broadly, operating cash flow minus investments in net fixed assets and net current assets. It represents the net amount of cash flow available to creditors and owners. Free cash flow is an ideal way to measure a company's health and cash- generating growth.