Cash Flow - Links

It is measured by the amount of cash a company gained or lost during an accounting period and adjusted for any previous accounting for accruals and other non-cash transactions. It is calculated as follows: earnings after interest and taxes, less preferred dividend if applicable, with depreciation added back. It is possible for a company to report an operating profit while incurring a loss of cash for the same period as well as reporting an operating loss while incurring an increase in cash flow.