zack buckley's collection

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