NET INCOME VS. OPERATING CASH FLOW?

I’m the college commercial operation vital so I have the decent bargain of finance, however I’m stranded upon something. It seems to me which OCF gives the some-more correct illustration of the company’s strength since it does not embody debasement (a non-cash expense). So, why, when celebration of the mass the Wall Street Journal for instance, do you see “Company A’s net income increasing by 40M this quarter.” It seems to me similar to it would be some-more utilitarian to see “Company A’s OCF increasing by 20M this quarter” since you can try by artful means to get debasement (depending upon how you wish to book it) to shift any period, in spin becoming different your net income. So does any one have the great reason since you see net income reported in the news, instead of OCF. Thanks

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Red3Biggs May 16, 2010 at 6:35 pm

OCF can also be manipulated. You could aquire a large amount of short-term debt. This will have no effect on the income, but will increase your cash flow. (Or it will reduce your income, but not your cash flow)

Any finacial tool can be manipulated, but with a income statement, cash flow, and balance sheet for investing.

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