What is the difference between the terms Discretionary Earnings, Cash Flow, Adjusted Net Income and Owners Benefit? And what do they mean?
These terms tend to be used interchangeably but they are usually defined as profit before income tax plus depreciation, interest, owner’s compensation and other owner benefits. It represents the amount of money the owner has available to pay himself, to invest in additional equipment, to make the note payments on the business and pay taxes.
