Equity method records profits from company investments through another company. Used when investor holds 20% or more of another company's stock. Significant influence means power over investee through board representation
FCFF represents cash left for distribution to all funding providers after expenses and reinvestments. FCFF is one of the most commonly used metrics in company valuation. FCFF is prominently featured in discounted cash flow (DCF) analysis
Mid-year convention treats FCFs as generated at midpoint of period. Assumes cash inflows occur evenly throughout fiscal year. Used as compromise between year-end and mid-period assumptions
Operating Cash Flow measures net cash generated from core company operations. Cash flow statement provides better understanding of actual company liquidity. Positive OCF indicates adequate cash for reinvestment needs
Financial management uses data and projections to align business plans. Focuses on identifying sources, usages, and management of funds. Prioritizes long-term growth for sustainable financial future
Payout is the transfer of funds or assets from a source to a recipient. Payouts can be made in various forms including cash, checks, or cryptocurrency