The amount of money owed by clients to a firm against goods delivered or services extended. It is shown as a assets on the balance sheet.
Accounts Payable(AP):Accounts payable is the amount of money a company owes to its creditors (suppliers, etc.) in return for goods and/or services they have delivered. It is shown as a liability on the balance sheet.
Assets (Fixed and Current):Current assets are short-term assets that can be converted into cash is less than one, and fixed assets are long-term assets. Fixed assets (FA) are long-term and will likely provide benefits to a company for more than one year
Asset Classes:An asset class is a group of investments that normally have similar characteristics, behave similarly and are subject to similar market forces, laws and regulations. The main asset classes are Fixed Income or bonds Money market or cash equivalents Real estate or other tangible assets
Balance Sheet:A balance sheet is a snap shot of a company's financial position at a certain point in time and summarizes their assets, liabilities, and equity. It summarizes how much the investors have invested on us and how much we have paid back to the investors at a given point of time.
Capital (CAP):The term “Capital” is referred to the resources expressed in terms of liquid cash (money) also the fixed assets like land, machinery, building etc raised or brought in by the promoter of a business or a project. It is that part of an amount of money borrowed or invested (less liabilities) and which does not include interest.
Cash Flow (CF):Simply cash flow refers to the movement (in flow and out flow of cash) into or out of the business over a period of time.
In accounting terminology, it is the differential amount of cash available at the end of that period (closing balance).It is calculated by deducting opening balance of cash with the amount of closing balance end of that period. Normally the amount of closing balance if higher than the opening balance and is called positive balance or otherwise called negative balance.
Price-To-Cash Flow(P/CF):The price to cash flow ratio shows price per share against cash flow per share. Price to cash flow ratio is that ratio which enables us to analyse cash flow per share or the net cash a firm produces per-share. It gives us an idea about how much value we would get against the kind of price we are going to pay per share.
Formula:
Price to Cash Flow = Share Price / Cash Flow per Share