free cash flow Archives - CFO

Rethinking the Value of 3 Common Financial Metrics

Rethinking the Value of 3 Common Financial Metrics

Most companies use too many incomplete measures and would benefit from using one complete measure instead, as railroading company CSX has implemented.

By Gregory Milano | July 13, 2022

Netflix Reports Mixed Q3 Earnings, Slower User Growth

Financial Performance

Netflix Reports Mixed Q3 Earnings, Slower User Growth

Revenue was higher by 22.7% year-over-year as the company recorded 2.2 million paid net subscribers versus 6.8 million net additions a year ago.

By Vincent Ryan | October 20, 2020

Moody’s Deals a Blow to Ford With Credit Downgrade

Credit & Capital

Moody’s Deals a Blow to Ford With Credit Downgrade

The automaker's lackluster performance in profit margin and free cash flow leads the credit rating agency to relegate Ford's debt to junk status.

By David McCann | September 10, 2019

Buybacks on Pace to Hit Record Level in 2019

Credit & Capital

Buybacks on Pace to Hit Record Level in 2019

The buyback boom is raising concerns as companies are returning more cash to shareholders than they are generating in free cash flow.

By Matthew Heller | August 1, 2019

Could This Be the Recession That Wasn’t?

Could This Be the Recession That Wasn’t?

Even as key corporate financial indicators continue to fall, some hope may be emerging that forecasts of an impending recession will prove inaccurate.

By David McCann | March 1, 2019

SEC Intensifies Focus on Non-GAAP Metrics

Risk & Compliance

SEC Intensifies Focus on Non-GAAP Metrics

While the number of comment letters the commission sends to filers has waned drastically, the proportion of letters focused on non-GAAP metrics has shot up.

By David McCann | October 23, 2018

Is Exxon Riding Slowly into the Sunset?

Investor Relations

Is Exxon Riding Slowly into the Sunset?

If oil prices remain at current levels, at some point bond investors may no longer be willing to support the shrinking enterprise.

By Vitaliy Katsenelson | May 17, 2018

Pie in the Face for New Papa John’s CFO

Risk Management

Pie in the Face for New Papa John’s CFO

The incoming finance chief has an "impossible" problem in funding needed capex on top of a huge share buyback and dividend hike, analyst firm says.

By David McCann | May 14, 2018

Free Cash Flow: What Is It, Really?

Financial Performance

Free Cash Flow: What Is It, Really?

As the use of free cash flow as a guiding metric grows, researchers seek a solid definition for the term.

By David Katz | April 30, 2018

Are Rising Dividend Payouts Backed By Cash?

Working Capital

Are Rising Dividend Payouts Backed By Cash?

“Firms are only capable of sustainably maintaining their dividend payouts provided they are generating sufficient free cash flow,” researchers contend.

By David Katz | January 3, 2018

Will Tax Cuts Boost Capital Spending?

Working Capital

Will Tax Cuts Boost Capital Spending?

Despite surging sales and cash flow, company spending on capex continues to lag.

By David Katz | November 20, 2017

Is a Higher Valuation Multiple Always Better?

Is a Higher Valuation Multiple Always Better?

They're great for investment bankers and sellers, but lower valuation multiples are associated with greater shareholder return.

By Marwaan Karame | July 27, 2017

CFOs Pump Out Free Cash Flow

CFOs Pump Out Free Cash Flow

But big, public, non-financial companies are generating cash partly by cutting capex, study finds.

By David Katz | July 14, 2017

Balance-Sheet Cash Likely to Rise, Not Fall, in 2017

Balance-Sheet Cash Likely to Rise, Not Fall, in 2017

Absent an economic slowdown, strong free cash flow and accessible debt markets will keep companies from having to tap reserves.

By Vincent Ryan | January 30, 2017

Why Continuous Improvement Beats Annual Budgeting

Why Continuous Improvement Beats Annual Budgeting

To deliver shareholder value consistently, managers must operate within a system of continuous improvement based on a solid performance metric.

By Frank R. Hopson | August 24, 2016