Cody Willard

Cody Willard

Cody Willard

Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company.

He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."

Willard is also a professor at Seton Hall University where he teaches a class called "Revolutionomics," focused on technology and business. 

He is the author of the RevolutioNewsletter a subscription newsletter at RevolutioNewsletter.com, as well as CodyWillard.com, a blog focusing on various topics from music to Wall Street.  He is also the founder of RevolutioNetwork.com, the non-partisan social network of the New American Revolution.

He began his career at Oppenheimer & Co. in 1996 and was Chief Analyst at Visual Radio, a technology venture capital fund, and VP of wholesale operations at Broadview Networks, a telecommunications company. 

A native of Ruidoso, New Mexico, Willard earned a bachelor's degree in economics at the University of New Mexico. Willard is also a musician and songwriter with the "Museum of the Horse" rock band.


Survive this economic revolution at http://RevolutioNewsletter.com

Read Cody's blog at http://codywillard.com

Facebook Cody at http://www.facebook.com/profile.php?id=763890180

MySpace Cody at http://www.myspace.com/codyonfox

 

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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.