Sometimes I see a company's "net change in cash" changes between positive and negative every alternate years or regularly every 2-3 years. E.g. Spindex.
What does it means? Any thing I can infer from this?
Thanks in advance!
(11-12-2013, 12:46 AM)Dividend Hermit Wrote: [ -> ]Sometimes I see a company's "net change in cash" changes between positive and negative every alternate years or regularly every 2-3 years. E.g. Spindex.
What does it means? Any thing I can infer from this?
Thanks in advance!
see the changes in components more meaningful la.
high level numbers like NAV, PE, EPS dont usually tell the whole story.
Ya lol, it's really hard work. Not only we look at financial ratios, the most important point is it the truth or correct when taken as the whole picture of the business reports (aka Balance Sheet, Income Statement, Cash Flow Statement, Explanatory notes, etc.. Yikeee.. )?
Maybe go for Blue Chips the MOS usually should be better then penny stocks.
(11-12-2013, 12:46 AM)Dividend Hermit Wrote: [ -> ]Sometimes I see a company's "net change in cash" changes between positive and negative every alternate years or regularly every 2-3 years. E.g. Spindex.
What does it means? Any thing I can infer from this?
Thanks in advance!
Yes, looking into the components is more important.
What is driving the increase/decrease in net change in cash? Is it working capital? If so, is it sustainable? Is it debts? If so, why raise debts? Will they be able to finance it when it is due? Etc etc etc
Normally, net change will fluctuate since there is so many components driving it.
By looking at net cash is positive alone don't really tell you anything much lol!
Thanks everyone for your help.
I am thinking it is more due to operation or maintenance since the pattern is so regular though more probing is required.