cash flow and operating income are two of the most important financial metrics that a business can track. They both give insights into a company's financial health, but they measure different things. Here's a look at the key differences between cash flow and operating income.
Cash flow is the movement of money in and out of a business. It's a measure of a company's liquidity, and it tells you how much cash a company has on hand to pay its bills. Cash flow is important because it's a key indicator of a company's financial health.
Operating income is a measure of a company's profitability. It tells you how much money a company makes from its core operations, after deducting operating expenses. Operating income is important because it's a key indicator of a company's financial health.
The key difference between cash flow and operating income is that cash flow is a measure of a company's liquidity, while operating income is a measure of a company's profitability.
Cash flow is a measure of a company's liquidity. It tells you how much cash a company has on hand to pay its bills. Cash flow is important because it's a key indicator of a company's financial health.
Operating income is a measure of a company's profitability. It tells you how much money a company makes from its core operations, after deducting operating expenses. Operating income is important because it's a key indicator of a company's financial health.
Cash flow and operating income are two of the most important financial metrics that a business can track. They both give insights into a company's financial health, but they measure different things. Cash flow is a measure of a company's liquidity, while operating income is a measure of a company's profitability.