Operating cash flow: Difference between revisions

Revision as of 04:07, 9 November 2010

Revision as of 21:55, 28 November 2010

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Cash generated from customers

*revenue as reported

*- increase (decrease) in [[''operating'' accounts receivable|''operating'' trade receivables]] (1)

*- investment income (Profit on asset Sales, disclosed separately in Investment Cash Flow)

*- other income that is non cash and/or non sales related

Cash paid to suppliers

*[[cost of goods sold|costs of sales]]- Stock Variation = Purchase of goods. (2)

* + all other expenses as reported less

* - increase (decrease) in [[''operating'' accounts payable|''operating'' trade payables]] (1)

* - non cash expense items such as [[depreciation]], provisioning, impairments, [[bad debt]]s, etc.

* - financing expenses (disclosed separately in Finance Cash Flow)

(1): ''operating'': Variations of Assets Suppliers and Clients accouts will be disclodes in the Financiel Cash Flow

(2): Cost of Sales = Stock Out for sales. It is Cash Neutral. Cost Of Sales - Stock Variation = Stock out -(Stock out - Stock In)= Stock In = Purchase of goods: Cash Out

==Operating Cash Flow vs. Net Income, EBIT, and EBITDA==