Quotes About Cash flow

one reason we like liquidity as a Balance-Sheet goal. It greatly increases the odds that we will have the cash we need to pay bonuses and do a lot of other things.

If the company doesn't hit its forecasts, cash is tied up in inventory. Cash is like blood or oxygen; without it, you die. And growth eats cash. This is why roughly half of all bankruptcies occur after a year of record sales.

In theory, bad economic times should pull prices down, but the glut of global petrodollars kept pushing inflation up while high unemployment held wages down, giving birth to Stagflation. Lindsay raised taxes to make up for sliding revenues, but it wasn't enough, and here's where the nosedive began. State funds and property taxes come to the City twice a year, so to maintain cash flow it has to regularly borrow hundreds of millions of dollars.

The fact is that one of the earliest lessons I learned in business was that balance sheets and income statements are fiction, cash flow is reality.

Discounted Cash Flow The discounted cash flow method of valuation is the most sophisticated (and the most difficult) method to use in valuing the business. With this method you must estimate all the cash influxes to investors over time (dividends and ultimate stock sales) and then compute a "net present value" using an assumed discount rate (implied interest rate).

Furthermore, we do not think so-called EBITDA (earnings before interest, taxes, depreciation and amortization) is a meaningful measure of performance. Managements that dismiss the importance of depreciation - and emphasize cash flow or EBITDA - are apt to make faulty decisions, and you should keep that in mind as you make your own investment decisions

Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent.

A truly sustainable relationship between earnings and operating cash flow requires that the two measures grow at comparable rates over the long term. When their rates of growth depart, an understanding of the causes can provide insight into how that discrepancy might be resolved. Such insight will provide guidance on the direction of future earnings and cash flow.

Given the specialized niche and deal size, there is scant competition in this acquisition market, enabling Essilor to purchase companies on attractive terms (such as six to seven times cash flow). This ability to systematically improve the operations of acquired businesses is rare but can create significant value.

Patent licensing was not a business strategy for Pixar. It was a financing strategy, something we would do once or twice to bring in cash, but no more. It would buy Pixar time, not guarantee long-term success.

To jump-start our economy, we must leave cash in your hands - because if you've got money in your pocket, you'll spend it at the hardware store or the corner market, and that will drive job growth in our private sector.

objective, it said, was to push Gulf into transferring half of its U.S. oil and gas reserves into a royalty trust, which would be owned directly by the stockholders, giving them the cash flow and eliminating the double taxation on dividends.

The typical user of a food bank is not someone that's languishing in poverty: it's someone who has a cash flow problem.

The strategic plan to transform Valeant smartly focuses on rebuilding the company's core franchises in ophthalmology, dermatology, and gastroenterology while simultaneously using the proceeds from the sale of non-core assets and operating cash flow to de-lever the company.

Our first use of cash is invested organically, secondly returning values our shareholders - roughly 100 percent free cash flow. And then thirdly, mergers, acquisitions, partnerships that complement our organic strategy. We are going to continue down that path.

Maintaining a positive cash flow (more money coming in than going out) helps you increase your net worth.

If the cash runs out, it's like a heart attack for you and your business. Keep that front and centre of your mind, and you will have financial security and not be struggling to pay the bills.

Cash in must exceed cash out.

I think for any small business that's bootstrapped, the overwhelming challenge initially is getting to positive cash flow.

There needs to be a bigger focus on creative innovation versus business models and cash flow.

One thing I never thought about in my big-company job? Cash flow. When your business has billions of dollars in revenue, you can make a lot of mistakes and still have a viable business. But in a startup, make a few hiring mistakes, and you can find yourself in real jeopardy fast.

The first thing you need in order to make a business viable is to preserve a cash flow. I made sure I didn't have any financial backing or support.

senior managers' goal here should be to manage their portfolio of businesses to wisely balance between profitable growth and cash flow at a given point in time.

Taking in money, banks were like industrial vacuum cleaners. Giving it out, they were clogged faucets