Dear wireless_wonk,
Of course, your definitions are exactly right among financial executives and in a medium (such as an audited financial statement) where the technically correct definitions can be assumed to be the ones in play.
There is a colloquial definition of cash flow as well, and in the forum of a Press Release, I am skeptical about the usage. Consider the usage, apparently inappropriate, of petroleum industry terminology in the same context.
Imagine the defense of the phrase "cash flow" in that usage, in front of the SEC or other authority. The SEC would have a shot at nailing a misleading use if one has occurred, but a regular courtroom would not in my opinion. Having read through more than 1,000 pages of transcripts for AZNT dealing with securities issues, and having other exposures to the problem, the courts seem to me to be not much better equipped with financial and securities details than is Joe Public. That was my point, even if not well presented.
But thanks for your considered response! In an entity with large debt service, the distinctions between EBITDA and other metrics can be large, neh?
Level Head |
