Cash Flow From Assets Calculator

The Cash Flow From Assets (CA) is a financial metric that represents the net cash flow generated or used by a company’s operating and investing activities. It is calculated by subtracting the capital expenditure (spending on assets) and changes in working capital from the operating cash flow.

The formula for Cash Flow From Assets (CA) is:

CA=F−CE−WC

Where:

• Operating Cash Flow: This represents the cash flow generated from a company’s normal business operations. It includes cash received from customers and cash paid to suppliers, employees, and for operating expenses.
• Capital Expenditure: This refers to the money spent by a company to acquire or upgrade physical assets such as buildings, machinery, equipment, etc. It is an outflow of cash.
• Working Capital: It represents the difference between a company’s current assets (like cash, accounts receivable, and inventory) and current liabilities (like accounts payable and short-term debt). An increase in working capital uses cash, while a decrease in working capital provides cash.

The Cash Flow From Assets is an important measure of a company’s ability to generate cash from its operations and manage its capital expenditures and working capital effectively. It provides insights into the company’s financial health and sustainability over time.