Zack Buckley wrote this on IHUB, I haven’t read it yet, but it looks useful.
I’ve been thinking about cash flow a lot recently. Here’s a very rudimentary look at the cash flow for alot of our favorites.
Key
? – I was lazy if google finance didn’t have it I didn’t write it down. I will finish the ?’s later
Y – op cash flows matched up with net income
Y great – op cash flows exceeded net income, usually substantialyl
Half – op cash flows were good some years/quarters and bad others in comparison to net income. Or might have been around half of net income
N – cash flows did not mark up closely with net income
I would also like to explore in some of the companies why the cash flows didn’t match up, and then figure out if it is a long term issue. I think that the quality of earnings has to be questioned when a company consistently is not generating cash flows and is piling up either inventory or a/r. It’s a great place to start in terms of looking for fraud/financial misrepresentation.
Skbi for instance has an issue with cash flow. I see that the main reason is that they have had some prepayments. I am relatively comfortable with this, as I see it as better than a rapidly growing inventory and a/r balance. While I am still not as happy as I would be if they were generating an equal or greater amount of cash in comparison to their net income.
Would love to hear others thoughts
Zack
ear cash flow?
djsp
csgh y
bfar y
skbi n
bspm half
chgy y
chbt y
lpih half
jada y
ccgy y
csgj y
puda half
cgdi y
sokf y great
cnam n
enhd half
ckgt y
sgzh y great
wkbt y
chme y
yong n
newn y
onp y
cclwf ?
ccme y
rhgp y
celm ?
chnc n
xnyh y
spu ?
chop ?
akrk n
tstc n
fuqi n
nep y
cgpi ?
sihi n
ghii half
chcg y great
siaf ?
ctxif ?
cyxn y
crui ?
cadc half
txic half
chio y
cpqq y
cnbi n
yhgg ?
hogs y
boy.v
cmfo half
yuii y
jgbo y
nfec n
tpi y
aln half
abc.v ?
cnoa half
cfsg half
chbu y
cga y
ltus y great
llen good 09
cpby n
csr half
cnyd ?
ors horrible
apwr half
liwa half
sclx y
cbpo y great