Why Cash Flow From Operations is important information Article

Why Cash Flow From Operations is important information - Article Example Operating expenses are subtracted from the operating revenues to extract the net cash flow from operating activities; this is why it is so important for small businesses to keep in check its operating cash flows. The other reasons why cash flow from operating activities is so important for small businesses is its ability to quickly determine the immediate financial health of the company. Cash flow is important as it gives the firm the ability to pay off current expenses. The current expenses usually include; labor costs and debt repayments. For these reasons, cash flow from operations (CFO) is important for both parties; the firm as well as the lenders and creditors. The creditors can assess the investment potential of the company from its CFO. Small businesses usually start with debt financing and the interest is an operating cash flow, since this figure is adjusted for liabilities, depreciation and receivables (Ross, Westerfield, Jordan, 2012), an operating cash flow is generally more accurate measure of how much cash the business has generated as compared to other measures such as Net Income (NI) or Earnings Before Interests and Taxes

Wall-MArt Essay Example | Topics and Well Written Essays - 250 words

Wall-MArt - Essay Example a lot of money in training people and even more money is spent to retain the same employees and this must be maintained to gain an edge over their competitors. The Greater China region remains an untapped market and if Wal-Mart can have a tie up with another store in Greater China region they would be able to strike gold, there is a lot of potential in the Asian markets and most of them remain largely untapped so this is an ideal opportunity for Wal-Mart to strike gold. Even some European markets are largely untapped; these are really good opportunities for Wal-Mart to capitalize on and a lot of money can be made should the organization consider entering into new areas and new markets. India particularly remains an untapped market and the recent policy changes have facilitated big players to enter into the country and this is arguably the right time to milk the Indian market and to strike gold. To conclude it is very fair to say that Wal-Mart can become even bigger should it decide to enter new markets, the Asian markets are ready for the Wal-Mart stores and there is no reason as to why the organization should delay entering into those