Questions tagged [cash-flow]

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I cannot calculate this because I don't have the discount rate

What is the NPV of the following investment? Upfront, it requires an investment of 1598. Then, it generates a cash flow of 774 after one year, 659 after two years, and 623 after three years. After ...
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1 answer
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Can I switch my car lease to prepaid?

My financial circumstances have recently changed, and as a result my cash flow is slightly negative. I have a car lease but I also have enough saved that I could prepay the remaining payments on the ...
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I've already filed my personal income taxes but didn't file my schedule E along with it

I have an out of state investment property that's under my name that I rent out to a tenant. I did my personal income taxes through Turbo Tax for free and during the process, it asked about any ...
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1 vote
1 answer
89 views

Intrinsic value of a stock which pays out dividend

I want to find the intrinsic value of a stock which pays out dividend but not a significant amount. In particular, is there a way to incorporate the dividend payout in the discounted cash flow ...
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2 answers
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Cash flow statement and depreciation [closed]

Why is the depreciation included in the operating cash flow (OCF) rather than the investing cash flow (ICF) section of a cash flow statement (indirect method)? I haven't found the source from the ...
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How exactly can I benefit from straight line depreciation on my property?

I have a rental property and have been reading heavily about straight line depreciation but I'm not quite grasping what it is and how I can benefit from my $4,092.92 deduction come tax season? After ...
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3 answers
118 views

To what extent do funds used to purchase stock transfer to the company who's shares are being purchased? [duplicate]

Obviously when buying shares from a public offering, those funds are basically going to the corporation making the offering; that's the whole point. So for this question we are discussing the ...
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When we analyze company we invest in using cash flow, how is their buying real estate different from buying computers? [closed]

When we invest our money in public companies, we may analyze them using cash flow. There can be two different scenarios: the company buys a lot of real estate or warehouses as their capital ...
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How should I classify a loan with less than 12 months left when constructing personal financial statements?

If I have a loan that I will finish repaying over the next 5 months (original tenure is 5 years so I've paid 55 monthly repayments already), if I'm constructing a financial statement today, does this ...
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0 votes
1 answer
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If a company pays higher salary to employees, does that affect the Cash Flow of a company?

This question aims to understand Cash Flow, when we invest our money in companies. Let's say, if a company thinks: "We make so much money. Let's pay our people 66% more in salary." In that ...
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1 answer
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High dividends implied by high depreciation allowance?

Why could a high depreciation allowance imply a payment of high dividends? For example, in a course example, it is said that: British Energy would pay dividends out of cash flows. These were expected ...
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How is the cash flow perpetuity formula derived?

I don't know if this is the correct StackExchange community (it seems more related to personal finance than corporate finance), but I would greatly appreciate if someone could clarify to me this ...
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1 answer
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How can the EV/FCF be less than 1 for big companies barring extraordinary events

I found out that a large bank is reporting an EV/FCF of around 0.8, this seems ludicrously undervalued to me. What factors am i not taking into account?
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2 answers
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How to understand discounting future cash flow to present cash flow?

I was given this question in class. You have the opportunity to purchase an investment that will pay $2000 at the beginning of each year for three years. You can earn 5% per year on a comparable ...
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0 answers
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Unable to reach the values of Cash Flow Statement of FTS Fortis Inc

I am studying the cash flows statement of Fortis Inc. with the ticker symbol FTS. I am unable to reach the values for equity component, gain on disposition, working capital, changes in long-term ...
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Why do we discount cash flows with WACC instead of the opportunity cost?

First, a definition of WACC: The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of ...
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Valuation of cash flow produced by a valuable asset

How should a cash flow produced by an asset of value (such as a stock or piece of land) be valued when the receipt of that cash flow is dependent on the ownership of such asset? For example, consider ...
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Where did the money go in the recent GME short squeeze?

Recently the GME stock moved in an extreme way, though there is more to it, these steps appear to have happened: A hedge fund had a large short position Many retail investors bought the stock, ...
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1 answer
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FCF Calculation Discrepancy

I'm trying to calculate the Free Cash Flow (FCF) for a some public companies. My understanding is that the FCF formula is: FCF = [Operating Income] - [Taxes] + [D&A] - [Chg in NWC] - [CapEx] I am ...
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Why is capitalization because of revenue fall important?

I have a question: Why is extra capital important in case of revenue drop, either quarter or annual revenue? I'm asking: what are the benefits of getting large amounts of extra capital if revenue drop ...
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Cash flow and dividends

I am learning about dividends and read that the free cash flow of a company is the money it can payout to investors through dividends. Free cash flow is the cash left over after a company pays for its ...
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0 votes
2 answers
224 views

I fear I may be laid off soon. How do ensure additional income?

I am a highly skilled worker in the oil & gas industry. I fear I may be laid off soon because gestures at everything. I have already begun rapidly applying to a lot of jobs. Unemployment in my ...
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Calculating Dividends paid out and Div ratio from finance sheets

So I was trying to calculate the dividends a company paid out from the balance / income sheet and the retained earnings (the delta between this and last period). I thought the dividends paid could be ...
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2 answers
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How is minority interest accounted for when calculating net income

Reading around, I found that minority interest is defined as interest in a company controlled by a company other than the parent company. Does that mean that anytime a company A becomes a shareholder ...
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4 votes
1 answer
187 views

Do I have to put 20% down on a condo so that I don't have to live in it for 1 year before renting it out to tenants?

I really want to purchase a condo and rent it out to tenants for some extra cash flow here in Queens, NY. I contacted a mortgage loan officer and he told me that I HAVE to put 20% down if I decide not ...
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1 vote
3 answers
772 views

Why does DCF ignore depreciation & amortization?

Discounted cash flow is a widely used method for valuing companies. It is based fundamentally on the sum net present value of the future free cash flows. The free cash flow is based on the EBITDA with ...
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1 answer
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Why is the 'Cash/Equivalents, Start of Period/End of Period' not the same?

On Walmart's cash flow statement here: The 'Cash, Equivalents, Start of Period' for 2018 is the same as the 'Cash, Equivalents, End of Period' for 2017 (6,867.0). (Please be aware, years are going ...
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1 vote
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Are maintenance fees and other fees covered by tenant or does the owner have to pay that?

I'm looking around apartments not to live in - but to rent out for some cash flow. I'm eying a particular co-op and was wondering: Hypothetically, I took out a mortgage for the co-op. Am I ...
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2 votes
1 answer
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doubt regarding cash flow statement of bajaj finance?

I need a little here understanding this cash flow for Bajaj Finance. The cash flow here from operating activties is in negative and goes on increasing in negative value. While that for financing ...
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0 votes
1 answer
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Comparing two options of investment

An investor is considering to buy a property. It costs $200.000,00 and it will allow him to receive $28.000,00 during the first year (which will decrease $300,00 per year). If he buys this property, ...
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0 votes
3 answers
218 views

Fastest way to pay off debt

What is the best order to pay off debt? Only debt being home loan. For example, my home loan has interest rate of 3.5% and the stock market (some total market fund, e.g., FZROX, VTSMX), ideally, goes ...
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3 votes
1 answer
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Is Apple's depreciation now $12.5 or $11.3 billion?

I was casually reading the 10K for 2019 for Apple where I realized that I don't get the numbers. In the consolidated statement of cash flows (page 36) "Depreciation and amortization" for 2019 is ...
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If cash flow is calculated by net income + depreciation without adding capital expenditures, isn't it potentially very inaccurate? [closed]

To invest in companies I need to find out more about cash flow. Sometimes cash flow is defined and calculated by cash flow = net income + depreciation costs - capital expenditures ... (1) ...
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0 votes
1 answer
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Is this how capital expenditure vs depreciation affect the net income?

Some people add back depreciation to net income, and then deduct capital expenditure from the net income, to reach what they consider the "true cash flow" or earning power of the company. What is the ...
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0 votes
2 answers
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If operating cash flow yield of a company is negative along with revenue growth for current year , does that mean the company is in deep trouble?

I subscribed to one technical analytics service for the stock market. Here is one company whose fundamental indicators, I was looking at. Below is the fundamental analysis comparison of peer ...
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2 votes
3 answers
373 views

Best way to cash-out for passive income

First, my investing knowledge is very limited (still new to this, still learning). Second, my question is somewhat unfocused, sorry about that but I hope that there is a somewhat concrete answer, ...
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3 votes
1 answer
263 views

Investments that provide cash flow

We have just sold our house and moved into an apartment. This means that we a large sum of cash on hand that is just sitting in our savings account. Roughly $150k. We are therefore looking for ...
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7 votes
2 answers
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Why are goodwill impairments on the statement of cash-flows of GE?

Consider the General Electrics 10-K report for 2018. In the statement of cash flows they report 22,136 million of cash gains attributed to (apparently positive) goodwill impairment in the value of ...
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0 votes
1 answer
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What to consider Cash Flows in DCF analysis [closed]

When evaluating a project using discounted cash flow analysis, are cost savings (such as lower utility bills) as a result of taking on a project considered cash flows? Also, should the increase in ...
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2 votes
4 answers
309 views

Time value of money confusion [duplicate]

I am new to the stock market and currently trying to just get a basic understanding of the stock markets using online sources (investopedia). I came across this sentence when I was reading on a ...
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1 vote
3 answers
349 views

Take money out of paycheck into income producing asset(s)

My company has a 401k plan where they would take out money from my paycheck and match whatever I put into it. The concept of taking money out of my paycheck every two weeks and put it into a ...
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-5 votes
3 answers
308 views

Perpetual Cash flow evaluation

If some cash flow paid $100, 100, 100, 100, 400, 100, 100,... perpetually (the pattern is 400,100,100) the first year is skipped. The discount rate is 10%. How do you find the PV of this?
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1 vote
1 answer
650 views

A question about CAPEX when Calculating Free Cash Flow (FCF)

When performing the following to determine free cash flow: Free Cash Flow = Operating Cash Flow - Capital Expenditures Do I include only Capital Expenditures (13,732 in the example below), or do I ...
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1 vote
1 answer
425 views

Bi-weekly payments with dividends or other investments

I am aware that dividends pay out 4 times a year. I would like to start earning passive income using dividends. My question is Is there any way to buy different stocks that payout at different times ...
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1 vote
2 answers
109 views

How to get Loan for more then 1 CashFlow Apartament?

I see that experienced people buy MANY flats using loan and then provide them for rent and that rental payments cover loan payments. But when I asked the bank to do it, the bank is glad to provide ...
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0 votes
1 answer
149 views

Confusion between revenue, earnings, investment and cash flow

I'm reading text book that introduces some financial concepts, all of which are really new to me. I'm reading a passage on Return on Investment Capital. In this passage, they try to demonstrate ROIC ...
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0 votes
1 answer
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GnuCash Cashflow Report Account Display Depth

In a GnuCash Cashflow report how can i change the "Account Display Depth" of the sections? Money into selected accounts comes from Money out of selected accounts goes to Detail: In GnuCash's ...
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-1 votes
1 answer
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Calaculating Quartely cash collections [closed]

Sorry if this is the wrong place for this financial concept question, it's about the cash budget. Accounts receivables at the beginning of the year are $345. The company has a 60 day collection ...
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0 votes
1 answer
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Bank - bad loan provision & bad debt written off [closed]

I am doing financial health analysis for banks. The health checks involved are: Bad Loan provisions > actual Bad Debts written off ? I check across financial statements, there are 3 related fields: ...
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0 votes
3 answers
313 views

What are the pros and cons of buying in cash and remortgaging vs taking a mortgage right from the start?

I was wondering what are the best options. Of course if depends so I would like to know what are the pros and cons of each solution. One obvious that came to mind - buying in cash allows to act at a ...
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