Net Income vs Free Cash Flow (What Is The Difference?)

What is the difference between net income and free cash flow? In this video I will explain the difference between net income vs free cash flow. There are significant differences between the two that management and investors should be aware of.

Hi, my name is Justin but my friends and colleagues call me J-Money "J.M0NEY." I have an extensive background being an accountant and currently do financial planning and analysis for a public company.

Thank you for watching and I hope this video is valuable. Please like and subscribe if you like the content.

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I am not a financial advisor and this is for entertainment purposes only.

[j.mney]

Thanks for watching! Drop any questions or comments below. Like and subscribe if you like the content. Thanks!

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[bennykhoo]

I wish to understand more about pitfalls/traps such as Enron/Arthur Andersen scandal revolving around accounting/income/cash flow statements.

[anmayo]

I've been looking for a detailed and easy to understand explanation on this topic for a while now & you're the first and only person i found on YouTube who actually did a really good job with it imo

I'm hyped for more accounting videos!! 💛

[eliasmiguelmanassalgado]

Thank you Justin! Love videos like this where you can actually learn things rather than stocks to buy or market crash is here. It feels like it does not get as much clicks but you will always count on people like me looking forward to learn more :)

[manemrob]

Thanks again Justin! These videos deliver so much value! I really appreciate the examples and explanations.

[clouddeveloper]

Very helpful explanation! Love the real world use cases and how the various statements relate\contrast.

[KatelynCate]

While educational content is rarely as popular as stock picks, I appreciate them.

[KelechIwuaba]

Thanks for the breakdown here. Been a while since I have gone around the basics. I really just go to the stuff I need and never pay attention to all the details

[richardcristancho]

Awesome video Justin. Really appreciate you breaking down and explaining this sort of stuff

[akshaykumar-ykri]

Hi J thanks for the great video !
Can you make a video on owners earnings and each item that takes, the meaning of it

[hawtwax]

I get confused about what is capex vs what are expenses on the income statement (especially cost of revenue). Any light you can shed on this?

Great video!

[exsaviervega]

Can you make a video on intrinsic value using the dcf valuation. Thanks!

[ssjj]

Is (Repurchase of Common Stock) same as stock buy back?

[CP-qgks]

J. Money
Yes this is very helpful. I’ve always wanted to learn how to read a cash flow report but I get lost because I don’t know what to look for.
My question is when you have cash from operations and then subtract cap ex that gives you free cash flow as a whole. How do you figure out free cash flow per share?
Is it free cash flow / by shares outstanding?

[disculpa]

Please help! I read that free cash flow should add back money that was reinvested back into the company. But I didn't understand which line item refers to the money which was reinvested.

[augustusg]

Free cash flow is actaul profit for investors not earngins. You can take out fcf not the earngins.

[lehel]

IM Cannabis Corp. (IMCC) can someone help me to analyise this small cap stock for me it seems a really interesting