Cash Flow Analysis and Free Cash Flow

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Lyrics

[Verse 1]
Corporate ledgers tell their tales through three distinct streams
Operating cash reveals what daily business means
Customers paying invoices, suppliers getting paid
Subtract the working capital that operations made

[Chorus]
O-I-F, the trinity of cash flow sight
Operating sustains you, investing builds your might
Financing fuels the engine, debt and equity combined
Free cash flow shows the surplus, financial freedom defined
Calculate it clean: operating less capex spent
That's the golden metric, liquid wealth truly meant

[Verse 2]
Investing activities show the strategic moves
Asset acquisitions, disposals that improve
Property and equipment, securities bought and sold
Intangible investments, stories yet untold

[Chorus]
O-I-F, the trinity of cash flow sight
Operating sustains you, investing builds your might
Financing fuels the engine, debt and equity combined
Free cash flow shows the surplus, financial freedom defined
Calculate it clean: operating less capex spent
That's the golden metric, liquid wealth truly meant

[Bridge]
Negative investing signals growth ahead
Positive could mean you're shrinking assets instead
Financing patterns reveal the capital structure game
Borrowing or repaying, equity's claim to fame

[Verse 3]
Free cash flow emerges when operations exceed
Capital expenditures that the business needs
Discretionary power, flexibility unleashed
Dividend potential, debt reduction increased

[Outro]
Three statements converge where cash flow analysis gleams
Beyond accrual accounting, revealing liquid dreams
OCF minus capex equals freedom's measure true
Financial flexibility waiting there for you

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