Thread by @IAmOanaLabes

Stop thinking cash flow is "just one number."
Here are 12 critical cash flow insights every CEO and CFO must master

Let's break it down:

1. Operating Cash Flow (OCF)
Cash generated by day-to-day operations.
A truer measure of business health than net income.

2. Investing Cash Flow (ICF)
Cash used for or generated by investments.
CapEx, acquisitions, and asset sales live here.

3. Financing Cash Flow (FCF)
Shows how the company raises and repays capital.
Debt, equity, dividends it's all here.

4. Free Cash Flow to the Firm (FCFF)
Cash available to all investors.
Foundation for DCF and strategic valuation.

5. Free Cash Flow to Equity (FCFE)
Cash remaining after debt service.
Used to evaluate shareholder value directly.

6. Discounted Cash Flow (DCF)
Not just for valuations.
DCF guides CapEx decisions, project ROI, pricing, and long-term planning.

7. Days Inventory Outstanding (DIO)
Lower = faster cash recovery.

8. Days Sales Outstanding (DSO)
Shorten this to accelerate inflows.

9. Days Payables Outstanding (DPO)
Stretch smartly without risking relationships.

10. Operating Cash Flow Margin
A key measure of financial efficiency.

11. Cash DSCR & FCCR
Debt Service Coverage and Fixed-Charge Coverage Ratios.
Assess your ability to meet financial obligations with real cash.

12. Current Ratio (C/R)
Current assets current liabilities.
A broad indicator of short-term financial health.

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