Cash flow can be considered as complimentary informationto earnings since combinative analysis of both quantities mightbring better results than analyzing earnings on its own. Earnings,also sometimes referred to as net income, are the summation ofnet cash income and net credit income, the latter of which isbased on credit trades with customers and is not yet but expectedto be settled by cash in a later period. The amount of credit givento customers could potentially be overlooked without cash flowinformation and this may mislead investors about the risk relat-ing to shortage of cash in the firm. In addition, cash flow directlymeasures the operational ability of the firm to meet its day-to-day financial commitments. In conventional finance theory, theworth of a firm is theoretically equal to the discounted value ofall cash flows generated during the firm’s life assuming that all