DXP Enterprises Gross Profit vs. Cash Flow from Operations Fundamental AnalysisDXP Enterprises is rated below average in cash flow from operations category among related companies. It is rated below average in gross profit category among related companies fabricating about 32.56 of Gross Profit per Cash Flow from Operations. Operating Cash Flow reveals the quality of a company's reported earnings and is calculated by deducting company's income taxes from earnings before interest, taxes and depreciation (EBITDA). In other words, Operating Cash Flow refers to the amount of cash a firm generates from the sales or products or from rendering services. Operating Cash Flow typically excludes costs associated with long-term investments or investment in marketable securities and is usually used by investor or analyst to check on the quality of a company earnings.
Operating Cash Flow shows the difference between reported income and actual cash flows of the company. If a firm does not have enough cash or cash equivalents to cover its current liabilities, then both investors and management should be concerned about company having enough liquid resources to meet current and long term debt obligations.Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Gross Profit varies significantly from one sector to another and tells investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.