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Oana Labes Profile picture
@IAmOanaLabes
Jul 16 • 7 tweets • 2 min read • Read on X
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. Image
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.
If this helped you:
1. Follow @IAmOanaLabes for sharp strategic finance insights
2. Join 55K+ execs reading my free newsletter: https:
3. Repost to share this insightbuff.ly/yPK0EXi

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More from @IAmOanaLabes

Oana Labes Profile picture
Jul 17
Most financial statements tell you what's already happened.
But not the cash flow statement...

Here's why:

This one tells you what's coming. Image
Let's break it down.

Here are 10 signs your cash flow statement is waving giant red flags:
1. One-time boosts in OCF from settlements or tax refunds
Sounds great on the surface.

But if core operations aren't funding the business, you've got a bigger problem.
Read 9 tweets
Oana Labes Profile picture
Jul 17
The best strategic finance dashboard fit's on a single page.
Connecting everything.

Changing how CEOs lead their companies.

Here's why this matters:

Most financial models are bloated.

Dozens of tabs.
Disconnected assumptions.
Endless complexity. Image
But complexity isn't strategy.
It's a liability.

Most models focus on tracking the past instead of driving the future.

A real strategic finance model does the opposite:

Connects operations, cash flow, valuation, and investment decisions all in one dynamic system
Shows how business decisions impact long-term value

Turns financial modeling into a growth and valuation engine

Fit's on a single page simple, powerful, strategic

When business leaders see this masterpiece, the reaction is always the same:

"This changes everything."
Read 8 tweets
Oana Labes Profile picture
Jul 14
Your P&L looks great.
Yet your company in trouble. Image
Most leaders glance at the P&L and move on.
You need to understand your cash flow.
Here's what you need to know:
Read 8 tweets
Oana Labes Profile picture
Jul 14
Cash is not king.
Cash flow is.

But not if your system is failing you.

Most CEOs rely on lagging reports and instinct.

No forward visibility.
No integrated forecasting.
No real-time controls.

The strategy may not be broken.
But the cash flow system definitely is. Image
Here's how I'd fix that in 7 days:

Step 1: Build a 5+ Year Strategic Financial Plan

Tie capital structure to long-term goals
Align inflows and outflows with each growth stage

Step 2: Create a 12-Month Execution Roadmap
Connect strategy to daily execution
Use AI and advanced intelligence to forecast Income, Balance Sheet, and Cash Flow

Step 3: Automate Rolling Forecasts

Update monthly with real time data for 60+ month visibility
Spot financial health risks and address proactively
Read 6 tweets
Oana Labes Profile picture
Jul 13
Profit is an accounting result.
Cash flow is a business outcome.

Here's why most leaders struggle...

Profit is easy.
It flatters the income statement.

It's hard to figure out.
And it exposes the business.

Here's what the P&L hides:

Non-cash items distort results Image
Capital spending drains liquidity

CapEx doesn't hit the income statement, but it hits your cash flow hard.
You look profitable while cash disappears.

Financing activity is invisible
Loan payments, equity raises, dividends? They don't show up on the P&L but they change your bank balance overnight.

You think you're doing well until:

You can't fund growth
You can't pay obligations
A deal falls apart in diligence
Read 6 tweets
Oana Labes Profile picture
Nov 23, 2024
What drives your cash flow?

There are 3 Main Cash Flow Drivers you should Know. Image
Operating Cash flows into your company from 3 main sources:

☑️ Revenue Growth

☑️ Operating Profits

☑️ Working Capital efficiency

How does it work?

Operating Cash Flow is the cash generated from a company’s core business activities.
The formula for Operating Cash Flow, CFO or OCF is as follows:

=Revenue

-COGS

-Operating Expenses

+Depreciation and Amortization

+Other non-cash items (e.g. gains/losses on assets sales)

+/ Changes in Working Capital
Read 13 tweets

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