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probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
1. probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions.
1. residual interest in the assets of an entity that remains after deducting its liabilities. In a business enterprise the equity is the ownership interest.
Working Capital =
Current Assets - Current Liabilities
represents the net amount of a company;s relatively liquid resources.
Free Cash Flow =
- Net cash provided by opperating activities
- - Capital expenditures
- - Dividends
Free Cash Flow
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