uf:
The reason you were not able to find at your link is that the Edgar filings at Yahoo are incomplete. You can see this if at that link, you click the option above for the raw filings.
Operational cash flow by itself would have made Enron look OK. Also companies have been slipping non-operational items in that section. So I think it would be to your advantage to calculate the free cash flow.
I hope I can offer a simple approach to this that will make the process accessible to all. What I would suggest is taking the following lines from the statement. I've taken figures from SEBLs most recent, available here at SI, for easy checking.
Top line under cash flow from ops:
Net Income. 188,675
Below are "adjustments to reconcile blah blah." Just reading over these can be enlightening or amusing. SEBL has included compensation related to stocks options, tax benefits from stocks options, and loss and gain on investments. These belong in the sections on cash flow from financing and investments, respectively. What you do want is just a couple lines down:
Depreciation and amortization. 81,849
If you like, you can add in the "changes in operating assets and liabilities." Just be advised that this can make things look very lumpy if you look quarter by quarter, as these tend to fluctuate a bit.
Scroll down to cash flows from investing activities. You want the line that says:
Purchases of property and equipment. (218,691)
You would then take free cash flow to be net income + depreciation&amortization - purchases of property&equipment.
FCF ~ 188,675 + 81,849 - 218,691 = 51,833. In other words, SEBL has earned roughly $50 million in FCF for the first 9 months of the year. If you did choose to add in changes in operating assets and liabilities, that would add roughly another $110 million to that. Either approach is legitimate so long as one is consistent.
Either way, I suggest comparing the number to:
the reported operating cash flows
the reported operating cash flows minus purchases of property & equipment
the net income
lines on stock options.
Looking at these numbers will just give one a better feel for how the business is going.
- Pirah |
