The net income of a company in a given year is an arbitrary number which depends on several decisions on the accounting of expenses and revenues. By contrast, each cash flow (money going out of the cash of the company into someone's pocket: shareholders, debt owners...) is a single number not...

Einführung -- Working-Capital: Definition, Wirkungen, Relevanz -- Working-Capital-Defizite in der Unternehmenspraxis -- Working-Capital: Verbesserung durch Prozessmanagement -- Working-Capital: Veränderungsmanagement -- Working-Capital: Gestaltungsmodelle für Finanzierung und Cash-Management...

A fundamental goal of this study is theoretical and empirical analysis of the role played by working capital and cash flow in effective management of companies. A generally accepted strategic long-term aim of companies is to maximize their market value, whereas a fundamental goal of short-term...

By excluding the change in non-operational working capital in calculating the net working capital for the FCF, analysts create a hypothetical or ‘virtual' cash flow. This may, or may not, be feasible given the firm's business plan, as funds may be earmarked for future capex, or other purposes....