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Strategies & Market Trends : Free Cash Flow as Value Criterion

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To: Pirah Naman who wrote (209)11/13/1997 10:17:00 PM
From: jbe   of 253
 
Pirah -- what a memory you have! Better than mine, certainly.

Anyway, I checked back to my post #52, and found only that I advocated amateur investors' using the Statement of Consolidated Cash Flow's net operating cash flow number, instead of trying to calculate cash flow themselves, because it was easier -- not necessarily better. (I then summarized some other approaches to calculating cash flow, to demonstrate that there may be as many methods of cakculating it as there are people who know how to calculate.)

I figure that the FSAB must have had some good reasons for including changes in working capital in their definition of cash flow -- but as a self-confessed amateur I have no qualms about saying I don't really what they are. That's why I want to see someone who does know up on the soapbox!

jbe
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