Actual Cash Flow

The Route Back to Basics in Corporate Finance
 by Ann Marie Svoboda  MBA, CMA, CFM, CTP, CSCA

What, exactly, is cash flow? Can the entirety of a firm’s cash flow be accurately and concisely measured? If so, can it be usefully interpreted? And then, what is its relationship to other financial metrics? How does cash flow support the ultimate value of the firm?  And, most importantly, are today’s financial professionals prepared to fully understand the information available in cash flow analysis?

These questions lie behind a growing trend in today's financial markets — a trend that demands a solid and legitimate framework for delivering shareholder return through cash flow.

The book begins its discussion of cash flow by examining a growing information gap within the corporate finance department. While reviewing this information gap, 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 ultimately impede economic return. As such, this book strives to explain cash flow so as to close the information gap.

This book teaches a basic methodology for reporting and analyzing cash flow. It concentrates on the day-to-day financial management of the firm and introduces a system for obtaining a comprehensive and immediate view into firm activity. That system is Actual Cash Fow™.

Interestingly, changes to financial reporting loom in the background of this work. This forces a deeper look into the evolving dimensions of GAAP, which appear to be changing in response to the same demands that justify the Actual Cash Flow™ system. It is in this relationship that the reader can understand how the internally focused Actual Cash Flow™ system can not only assist financial professionals to enhance their view inside the firm but can also sharpen their approach to financial reporting.  

Use the links below to access PDF excerpts of the book.