The cash flow statement relates to the balance sheet. Retained earnings on the balance sheet increases shareholders equity. Gross margins are gross profit dollars divided by sales. Return on assets is a measure of profitability and efficiency. The motley fool may have formal recommendations for against stocks they talk about. So don't buy oursell stocks based solely on what you hear.
Motley Fool Senior Analyst John Rotonti continues his discussion on the most important financial statements, focusing on the cash flow statement and what it reveals to investors. In part two of this two-part series, Rotonti discusses: - How net income becomes free cash flow - The choices companies can make with free cash flow (and why investors should care) - Margins that can indicate the health of public companies Bonus resource! How Net Income Becomes Free Cash Flow: https://www.fool.com/investing/general/2014/09/24/reconciling-net-income-to-free-cash-flow.aspx
Stock discussed: CMG Host: John Rotonti Producer: Ricky Mulvey Engineer: Rick Engdahl
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