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Free Cash Flow

Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Personal Finance / Lifestyle & Money / Health & Insurance

Holiday Safety: From Fires to the Emergency Room

 
 

NEW YORK--“It’s all fun and games until someone gets hurt.” Sound familiar? With house fires and emergency room accidents more frequent during the holidays, experts warn to take extra care when having fun this season.

December, January and February are the busiest months for home fires, according to the National Fire Protection Association.

“Heating and cooking are the leading causes of fires,” said Lorraine Carli, a NFPA spokesperson. “And around the holidays, you have more people heating, cooking and lighting candles for home decorations."

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Eleven percent of all home fires occur in December, with an average 210 home fires every year that begin with a Christmas tree -- about four per state.

“Electrical failures or malfunctions are involved in 48% of Christmas tree fires, and 27% of Christmas tree fires occurred when some sort of heat source was too close to the tree, whether it be a heater or a candle
or a fireplace,” said Carli.

Approximately one out of nine Christmas tree fires results in a death, whereas only one out of 75 common home fires is fatal. “Christmas trees are dry, and they ignite so quickly, they can catch many other things on fire before people have a chance to evacuate,” Carli said.

The best way to prevent Christmas tree fires is to check that tree light strands are up to modern safety standards- if your lights were made more than ten years ago, it's probably time to replace them. Also, check for any missing bulbs or frayed wires. Your tree should be placed in an open area, away from any open flames like candles or fireplace fires, Carli said.

Forty-five percent of unintentional injury deaths occur in or around the home during this time of year, according to Krista Conte, a spokesperson for Allstate Insurance.

“The holidays are the high season for these types of accidents,” said Conte. “Some preventative measures are obvious, but not everyone takes them.”

In England, the Royal Society for the Prevention of Accidents advises all people celebrating this year to use common sense.

“The homes and the celebrations are the same in America as they are here -- at Christmas time, people let their guard drop because they want to enjoy themselves,” said Roger Vincent, a spokesperson for RoSPA. 

The most common type of injury people suffer around the holidays is the result of a slip, trip, or fall, Vincent said.

“People trip over presents, they fall over their kid’s toy train, or they totter on the edge of a chair to put up Christmas decorations instead of using a stepladder,” said Vincent.
He said most of the accidents were preventable with a little common sense.

“You want folks to have a good time during the holidays, but a bit of forethought can go a long way,” Vincent said.

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