Actual Cash Flow: The Route Back to Basics in Corporate Finance
In Actual Cash Flow, Svoboda introduces a powerful methodology for financial managers to understand, report, and analyze cash flow. The book begins by examining a growing information gap within the corporate finance department, where two concepts are explained. First, cash flow is integral to measurements of a firm's profitability, value, and stability. Second, a clear vision to cash is not commonly available in today's finance department. These two conflicting realities complicate the firm's managerial objective - that is, producing wealth for its stakeholders - and allows the information gap to grow. As such, this book strives to explain cash flow. Topics discussed include: 1) why cash flow is important to a company's profitability and value, 2) the difficulties of analyzing cash flow in traditional financial reporting, 3) the components and functionality of cash flow within the firm, 4) detailed reviews of cash flow structures behind complex financial transactions; including leasing, securitizations, and pensions, 5) multinational and cross-border cash flows, 6) cash flow forecasting, and 7) a practical introduction to the Actual Cash Flow system.