Operating Cash Flow vs Net Income: An Analysis of Forex Trading

5 min read


Operating cash flow and net income are two metrics used to measure a company’s financial performance. Operating cash flow is the cash flow generated from the company’s operations during a certain period of time, while net income is the amount of money a company earns after all expenses are deducted from revenue.

While operating cash flow and net income provide an indication of a company’s financial performance, there are several differences between the two. Operating cash flow does not factor in one-time or non-operating expenses, such as taxes, dividends and debts, while net income does. Additionally, while net income reflects the net profit of a business, operating cash flow indicates the amount of cash a company has available to cover its operating expenses and can be volatile due to changes in a company’s inventory and accounts receivable.

Ultimately, operating cash flow serves as a more comprehensive measure of a company’s financial performance and can be used to assess a company’s future liquidity, while net income can be used as a reference to assess a company’s historical financial performance.


eps ratio”: What Is It and How to Use It in Forex Trading

5 min read

The EPS Ratio Forex trading system is a technical system based on the ratio of earnings-per-share (EPS) to the price of a currency pair. Traders use the EPS Ratio to identify undervalued currencies and moments when a currency is about to start an extended run of strength. The system takes the current EPS and divide the figure with the currency pair’s current price, giving the trader a ratio close to 1. This ratio is used to identify the potential overvalued or undervalued currency pairs. The system also provides technical signals in the form of alerts when a pair is displaying clear signals of a breakout or reversal. This allows traders to make informed trading decisions with greater accuracy and confidence.


Return on Assets Formula: Understanding this Financial Metric

5 min read

The Return on Assets (ROA) formula is an important tool for traders in the Forex market. It is used to measure the profitability of a trading system by comparing the total revenue generated by the system with the total amount of money invested. The formula requires traders to divide the total net income of a trading system by the total amount of money that has been invested. The resulting figure gives the trader a return percentage based on the amount of money that has been invested in the system. Knowing the return percentage enables traders to compare the profitability of different systems, allowing them to make smarter decisions when selecting their trading strategy.