Accruals days Accruals measured in terms of revenue from core operations per day. Calculated as accruals divided by revenue from core operations measured on a daily basis using a 365-day year. See also: Accruals (in revenue days)
Accruals to revenue % Accruals as a percentage of revenue from core operations. In effect, the proportion of revenue from core operations owed due to accruals as of the end of a reporting period.
Accum amortization, goodwill and acquisition-related intangibles The cumulative amount by which goodwill and acquisition-related intangibles have been expensed through amortization through time. Because goodwill is no longer amortized, changes in accumulated amortization will be due to amortization of other acquisition-related intangibles. On the cash flow analysis statement, changes in the account from one period to the next is used as an approximation for amortization expense on goodwill and acquisition-related intangibles. The account is used in computing capital expenditures, a component of investment to support operations, by serving as a reduction in depreciation and amortization incl. in cost of revenue and depreciation and amortization incl. in SG&A. The account is also used in computing investments in goodwill and acquisition-related intangibles, a component of investment of sustainable free cash flow.
Accum Other Comp Inc - Cumulative Translation Adjustments A component of the shareholders' equity account, accumulated other comprehensive income, that derives from foreign currency translation adjustments.
Accum Other Comp Inc - Derivatives Unrealized Gain/Loss A component of the shareholders' equity account, accumulated other comprehensive income, that derives from derivatives-related transactions and cash-flow hedges.
Accum Other Comp Inc - Marketable Security Adjustments A component of the shareholders' equity account, accumulated other comprehensive income, that derives from unrealized gains and losses on marketable securities categorized as available for sale.
Accum Other Comp Inc - Min Pension Liab Adj A component of the shareholders' equity account, accumulated other comprehensive income, that derives from underfunded pensions where the projected benefit obligation exceeds the fair value of pension assets.
Accum Other Comp Inc - Other Adjustments A component of the shareholders' equity account, accumulated other comprehensive income, that cannot be classified as related to foreign currency translation, marketable securities, derivatives, minimum pension liability or retained interests in securitized assets.
Accum Other Comp Inc - Unreal G/L Ret Int in Sec Assets A component of the shareholders' equity account, accumulated other comprehensive income, that derives from unrealized gains or losses on retained interests in securitized assets.
Accum other comprehensive income (loss) from investments Accumulated other comprehensive income (loss) arising from changes in the fair value of investments accounted for as available-for-sale. On the cash flow analysis statement the account is used in computing long-term investments, a component of investment of sustainable free cash flow and in computing other nonrecurring cash receipts (disbursements), a component of investment of sustainable free cash flow.
Accumulated benefit obligation The actuarial present value of any pension benefits earned to date on a defined benefit pension plan. Measurement is based on historical compensation rates for pay-related plans.
Accumulated depreciation The cumulative amount by which property, plant and equipment has been expensed through depreciation through time.
Accumulated depreciation / Property, plant and equipment, gross The cumulative proportion that property, plant and equipment gross has been expensed through depreciation. The measure provides an approximation to the portion of property, plant and equipment that has been consumed though operations and affords some insight into the age of a firm's productive capacity.
Accumulated depreciation, PP&E The cumulative amount that property, plant and equipment has been expensed through depreciation. It is reported as a contra asset to property, plant and equipment, gross. On the financial performance report the account is used in computing ratios measuring activity.
Accumulated other comprehensive income (loss) Cumulative gains or losses reported in shareholders' equity that arise from changes in the fair value of available-for-sale securities, from the effects of changes in foreign-currency exchange rates on consolidated foreign-currency financial statements, from certain gains and losses on financial derivatives and from adjustments for under-funded pension plans. On the cash flow analysis statement the account is used in computing other nonrecurring cash receipts (disbursements), a component of investment of sustainable free cash flow.
Acquisitions The cash paid in acquiring another business entity.
Acquisitions-related intangibles Intangible assets, other than goodwill, arising as a result of an acquisition. Examples include patents, trademarks, brands, customer lists and non-compete agreements.
Activity (in revenue days) Performance measures focused on analyzing efficiency of operations by expressing various balance sheet accounts in terms of revenue days, the number of days it would take to recover the item through revenue from core operations measured on a per-day basis using a 365-day year.
Actual change in cash and equivalents A term used on the cash flow analysis statement that consists of the change in cash and cash equivalents between reporting periods.
Additional minimum pension liability The excess of the accumulated benefit obligation, both vested and nonvested, over the fair value plan assets on a defined-benefit pension plan that must be added to liabilities as reported on the balance sheet. If the pension plan sponsor's books do not already carry a net pension liability equal to or greater than the excess of the accumulated benefit obligation over the fair value of plan assets, then an adjustment, known as the additional minimum pension liability, is recorded for the amount needed to bring the previously reported net pension liability up to the amount of the excess of the accumulated benefit obligation over the fair value of plan assets. On the cash flow analysis statement the account is used in computing other nonrecurring cash receipts (disbursements), a component of investment of sustainable free cash flow.
Additional paid-in capital The dollar amount of an entity's capital paid in by common shareholders in excess of that amount considered to be legal capital. Generally, it is the proceeds received upon the issue of shares in excess of par value or stated value. Additional paid-in capital represents one component of common shareholders' claims on the assets, earnings and cash flows of an entity resulting from amounts paid in when shares were issued to them. On the cash flow analysis statement the account is used in computing common equity financing, a component of financing transactions.
Adj. for income taxes paid (recovered) on material non-operating gains or losses An adjustment to income taxes (paid) recovered on continuing operations for tax payments or recoveries related to investing-related or financing-related transactions. For example, income taxes (paid) on continuing operations would be reduced for taxes paid on a gain from the sale of an investment (an investing-related transaction). Similarly, income taxes (paid) on continuing operations would be increased for a tax recovery arising from a loss incurred on an early-retirement of debt (a financing-related transaction). Such adjustments remove the related taxes from operating cash flow and transfer their amounts to other nonrecurring cash receipts (disbursements).
Adjusted EBITDA Conventional Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) with additional adjustments for other non-cash or nonrecurring items of revenue, expense, gain, and loss.
Adjusted operating cash flow Reported operating cash flow adjusted for the reclassification of selected nonoperating items and for nonrecurring items of operating cash flow. See also: Sustainable operating cash flow
Allowance for doubtful receivables The amount of outstanding receivables, including accounts receivable and notes receivable, at the balance sheet date that are estimated to be uncollectible. It is reported as a contra-asset, subtracted on the balance sheet from outstanding accounts receivable and/or notes receivable.
Allowance for doubtful receivables / Operating receivables, gross The percentage of outstanding operating receivables that are deemed to be uncollectible. It is calculated by dividing the allowance for doubtful receivables by operating receivables before the allowance for doubtful receivables is subtracted.
Alternative minimum tax (AMT) A tax beyond that computed under the regular income tax system. Various adjustments are made to regular taxable income, e.g., the excess of accelerated over straight-line depreciation, to arrive at alternative minimum taxable income. A preliminary tax is then computed on this revised earnings number using the AMT tax rate of 20%. If the AMT tax exceeds the regular tax, then this higher amount must be paid. Once paid, the additional tax beyond that under the regular system may be carried forward without limit. This AMT carryforward can reduce tax payments in future years when the regular tax exceeds the AMT tax.
Amortization expense on acquisition-related intangibles Non-cash amortization expense calculated on intangibles added as part of a corporate acquisition. Amortization expense is no longer computed on goodwill. Amortization expense on acquisition-related intangibles is computed by taking the change in accumulated amortization on acquisition-related intangibles. In computing capital expenditures it is subtracted from depreciation and amortization incl. in cost of revenue and in SG&A.
Amortization period for capitalized debt issue costs (in years, set >0) On the forecast financial statements, the assumed period over which capitalized debt issue costs, when they exist, are to be amortized. The amortization period must be set at an amount greater than zero. A typical amortization period is 5 years.
Analysis of Core Operating Cash Flow A summary of the cash impact of growth and the cash impact of changes in operating cushion and operating working capital days on core operating cash flow.
Analysis of income taxes before adj for taxes on material non-operating gains or losses and excluding tax benefits from stock options An identification of the cash flow drivers and the cash impacts affecting income taxes (paid) recovered before any adjustment is made for material non-operating gains or losses and before the inclusion of any tax benefits from stock options.
Analysis of Income Taxes Paid A summary of the cash impact of growth and the cash impact of changes in the tax cash-flow profile on income taxes paid.
Annual templates Standardized and custom Cash Flow Analytics, LLC financial report formats designed to use annual data.
Annualized aftertax sustainable earnings return on average assets Sustainable earnings divided by average total assets for a quarter, expressed as an annual rate.
Annualized pretax sustainable earnings return on average assets The percent pretax earnings return generated by average total assets during a period. For quarterly financial statements, it is calculated by dividing annualized pretax sustainable earnings by average total assets. Pretax sustainable earnings are adjusted to exclude known items of nonrecurring revenue, gain, expense and loss.
Annualized sustainable earnings return on average equity The percent earnings return generated by average total shareholders' equity during a period. For quarterly financial statements it is calculated by dividing annualized sustainable earnings by average total shareholders' equity. Sustainable earnings are adjusted to exclude known items of nonrecurring revenue, gain, expense and loss.
As % of cash flow available for debt service Measured cash impacts divided by cash flow available for debt service.
As % of cash flow available for investment Measured cash impacts divided by cash flow available for investment.
As % of core operating cash flow Measured cash impacts divided by core operating cash flow.
Assets and Liabilities - Other (Net Change) The period-to-period increase or decrease in other operating assets and liabilities not classified as accounts receivable, inventory, accounts payable or accrued liabilities.
Assumed disbursement period for restructuring and merger-related reserve (in years, set >0) Input data for Cash Flow Analytics, LLC forecast reports. The item measured the period over which a restructuring and / or a merger-related reserve, if any, will be settled The assumed period must be set greater than zero.
Available-for-sale security A default classification for an investment in a debt or equity security that is not classified as either a held-to-maturity security or a trading security.
Average diluted shares outstanding The weighted average number of diluted common shares outstanding during a reporting period.
Average diluted shares outstanding during period / Avg. basic shares outstanding A measure of potential future dilution of average basic shares outstanding through the issue of additional common shares resulting from option exercises and conversions of convertible securities.
Average diluted shares outstanding growth The percentage change in the average diluted shares outstanding from one period to the next. The measure is one indication of the effects of dilution through the issue of additional common shares.
Average exercise price on options exercised during period / Closing market price An approximation of the per-share discount received by purchasers of common stock as a result of options exercised during the period.
Average exercise price on options granted during period / Closing market price An approximation of the per-share discount to be received by recipients of options during the period based on the current market price.
Average exercise price on options outstanding / Closing market price An approximation of the per-share discount to be received by holders of options based on the current market price.
Average interest-bearing borrowings The average principal amount during a period on short-term and long-term debt and capital lease obligations on which interest accrues. Calculated by dividing two into the sum of the beginning balance plus ending balance of all interest-bearing borrowings.
Average preferred stock The average amount of issued preferred stock during a period. Calculated by dividing two into the sum of the beginning balance plus ending balance of preferred stock.
Average useful life of property, plant and equipment (yrs) The depreciation period used for property, plant and equipment. A high or increasing average useful life of property, plant and equipment could indicate that a firm is taking longer than it should to depreciate property, plant and equipment, potentially overstating earnings and leaving reported amounts of property, plant and equipment at risk for an impairment charge. It is computed by finding the reciprocal of the depreciation rate, that is, 1 divided by the depreciation rate.
Avg. basic shares outstanding during period The weighted average number of basic common shares outstanding during a reporting period.
Avg. diluted shares outstanding during period The weighted average number of diluted common shares outstanding during a reporting period. On the cash flow analysis statement the account is used in computing sustainable operating cash flow per diluted share and sustainable free cash flow per diluted share.
Avg. exercise price per share on options granted The average exercise price per share on options granted during the period. On the financial performance report, the account is used in calculating ratios measuring dilution.
Avg. exercise price per share on options outstanding The average exercise price per share on options outstanding at period end. On the financial performance report, the account is used in calculating ratios measuring dilution.
Avg. exercise price per share received for options exercised (CF Adj) The average exercise price per share received on options exercised during the period. This is a cash flow adjustment item. The amount is disclosed in the notes to the financial statements. On the cash flow analysis statement the account is used in computing net cash paid in buyback of shares for options, a component of other recurring cash receipts (disbursements) and in computing common equity financing, a component of financing transactions.
Avg. price paid for common shares repurchased The average price paid for common shares repurchased during a period. The model automatically calculates the amount by dividing cash paid for common shares repurchased during period by the no. of common shares repurchased during period. On the cash flow analysis statement the account is used in computing net cash paid in buyback of shares for options, a component of other recurring cash receipts (disbursements).
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Calculated average diluted shares outstanding The weighted average number of diluted common shares outstanding during a reporting period.
Calculated net income (loss) Net income as calculated by the model measured by netting all revenues and gains with expenses and losses. The account is used as a data-entry check. A warning indicator is given when calculated net income (loss) is not equal to company reported net income (loss). When the two amounts are not equal, reasons for the difference should be identified and resolved.
Calculated to reported capital expenditures Capital expenditures as computed using a balance sheet change approach measured relative to capital expenditures as reported on the company-prepared statement of cash flows.
Calculated to reported change in inventory The change in inventory as computed using a balance sheet change approach measured relative to the change in inventory as reported on the company-prepared statement of cash flows.
Calculated to reported change in payables and accruals The change in operating payables and accruals as computed using a balance sheet change approach measured relative to the change in accounts payable and accruals as reported on the company-prepared statement of cash flows.
Calculated to reported change in receivables The change in operating receivables as computed using a balance sheet change approach measured relative to the change in accounts receivable as reported on the company-prepared statement of cash flows.
Calculation of income taxes (paid) recovered The computation of income taxes (paid) or recovered based on income from continuing operations using income tax expense and changes in tax-related balance sheet accounts.
Call option A contract that gives its holder the right to buy an asset, typically a financial instrument, at a specified price through a specified date.
Capital expenditures Expenditures made in the purchase of long-term productive assets such as property, plant and equipment, whose cost is amortized against income in future periods. It is measured net of cash received for related asset dispositions. It is calculated as the change in the book value of PP&E, increased for depreciation expense and impairment charges on PP&E, reduced for gains on disposal and increased for losses on disposal, and reduced for interest capitalized to PP&E, which is used to increase interest paid.
Capital expenditures and investment to revenue % Capital expenditures and other investment needed to support operations that are directly linked to revenue growth, consisting of investment in operations-related intangibles and investment in other ops-related assets, as a percentage of revenue from core operations. Short-term changes in disbursements for capital expenditures and other investment needed to support operations can raise or lower sustainable free cash flow. Capital expenditures and investment to support operations to revenue % provides insight into the effects on sustainable free cash flow of changes in spending patterns for capital expenditures and investment to support operations
Capital expenditures cash-flow profile The driver underlying capital expenditures. In particular, capital expenditures are measured as a percentage of revenue from core operations on the presumption that capital expenditures will generally grow along with revenue and the scale of operations.
Capital expenditures equivalent of (additions) to operating leases The net (increase) in the capitalized value of operating leases, which serves as a proxy for the capital expenditures equivalent of new operating leases.
Capital Expenditures Profile: A component of the free cash growth profile reflecting the intensity of capital spending relative to revenue, measured as capital expenditures and investment to support operations divided by revenue.
Capital expenditures to depreciation on property, plant and equipment The number of times that capital expenditures cover a proxy for the portion of property, plant and equipment consumed during a reporting period. Measures above one indicate that productive capacity is being increased. Measures below one indicate that productive capacity is being depleted.
Capital expenditures to revenue % Capital expenditures divided by revenue from core operations. Short-term changes in disbursements for capital expenditures can raise or lower sustainable free cash flow. Capital expenditures to revenue % provides insight into the effects on sustainable free cash flow of changes in capital expenditure patterns.
Capital lease A lease that transfers, in an economic sense, the risks and rewards of ownership to the lessee without transferring title. Lease payments made are comprised of interest and principal. Property held under a capital-lease agreement is accounted for as an asset. This cost is amortized over the relevant useful life.
Capitalize into perpetuity at 12.5% An estimate of the present value of operating leases calculated dividing the current rent expense by the discount rate of 12.5%.
Capitalized debt-issue costs Costs incurred in the incurrence and issue of debt, including but not limited to such costs as, commitment fees, appraisals, legal fees, recording fees, and points. Capitalized debt-issue costs are amortized to interest expense over the term of the debt issue. On the cash flow analysis statement the account is used in computing total interest paid, a component of sustainable operating cash flow.
Capitalized interest Interest incurred during the construction period on monies invested in assets under construction that is added to the cost of the assets. Interest may be capitalized to inventory or to property, plant and equipment under construction. Capitalized interest should be kept separate from other capitalized operating expenses. Adjustments are made to remove capitalized interest from inventory and PP&E and add it to interest paid.
Cash flow adjustment item There are numerous nonoperating and nonrecurring items for which reported operating cash flow should be adjusted before it is used in analysis. The Cash Flow Analysis Statement adjusts for most of these items with entry of company-reported data from the statements of income and balance sheet. However, certain adjustments require additional manual data input. These adjustment items, found on the Statement of Income and Related Data Input spreadsheet, are labeled with an asterisk (*) and the letters (CF Adj). Note that with quarterly financial statements, data necessary for manual input are typically not available. See also: CF Adj
Cash flow analysis The search for the fundamental drivers that underlie a company's cash flow stream and affect its sustainability.
Cash Flow Analysis Statement A Cash Flow Analytics, LLC report designed to facilitate analysis that provides multiple partitions of the overall change in cash and cash equivalents and highlight sustainable and nonrecurring sources and uses of cash. The statement is a combination of the direct and indirect cash flow formats, showing the reconciliation of key items from the statement of income to their cash flow counterparts. Important subtotals on the cash flow analysis statement include Core operating cash flow, Sustainable operating cash flow, and Sustainable free cash flow.
Cash Flow Analytics Score™ The Cash Flow Analytics, LLC proprietary model stock selection score. The score ranges from 0 to 7. In their research paper, An Examination of Abnormal Returns Generated by the Cash Flow Analytics Proprietary Model, Jonathan Clarke and Charles Mulford demonstrate that stocks with Cash Flow Analytics Scores of 0 or 1 significantly under-performed a size-based index while stocks with scores of 6 or 7 significantly out-performed a size-based index. Stocks with scores of 2 or 3 moderately under-performed and stocks with scores of 4 or 5 moderately out-performed a size-based index.
Cash Flow Analytics Score™ (Four Quarters Ending) The Cash Flow Analytics Score™ measured for a four-quarters ending reporting period.
Cash flow available for debt service Core operating cash flow plus other recurring cash receipts (disbursements) and less income taxes paid. Cash flow available for debt service is cash flow available for the payment of interest and required principal payments on debt and capital leases.
Cash flow available for debt service / (Interest paid + Required principal payments) The number of times that cash flow available for debt service covers interest paid and required principal payments on long-term debt and capital lease obligations. It is a measure of debt service coverage indicating how well cash flow that is available to service debt covers total interest paid and the required principal payments on long-term debt and capital lease obligations.
Cash flow available for debt service / Interest paid The number of times that cash flow available for debt service covers total interest paid. It is a measure of debt service coverage indicating how well cash flow that is available to service interest covers total interest paid.
Cash flow available for debt service growth rate The percentage change in cash flow available for debt service from one period to the next.
Cash flow available for debt service growth rate (over same quarter previous year) The percentage change in cash flow available for debt service from the same quarter the previous year to the current quarter.
Cash flow available for debt service to total debt service requirements The number of times that cash flow available for debt service covers total debt service requirements. It is a measure of debt service coverage indicating how well cash flow that is available to service debt covers total interest paid and the required principal payments on long-term debt and capital lease obligations.
Cash flow available for debt service to total interest paid The number of times that cash flow available for debt service covers total interest paid. It is a measure of debt service coverage indicating how well cash flow that is available to service interest covers total interest paid.
Cash flow available for investment Cash flow available for capital expenditures and other investments needed to support operations. It is calculated as sustainable operating cash flow less dividends paid on preferred stock.
Cash flow available for investment / Investment to support operations A coverage ratio that measures the number of times that cash flow available for capital expenditures and other investments needed to support operations covers such investments needed to support operations.
Cash flow available for investment growth rate The percentage change in cash flow available for investment from one period to the next.
Cash flow available for investment growth rate (over same quarter previous year) The percentage change in cash flow available for investment between the same quarter of the previous year and the current quarter.
Cash Flow Drivers - Four Quarters Ending The factors that drive or result in increases or decreases in core operating cash flow, sustainable operating cash flow and sustainable free cash flow over time measured here for a four-quarters ending reporting period. An understanding of cash flow drivers facilitates the formation of expectations regarding cash flow sustainability.
Cash Flow Drivers Report A Cash Flow Analytics, LLC report designed to highlight the factors driving core operating cash flow, sustainable operating cash flow, and sustainable free cash flow higher or lower over time so that sustainability of those measures can better be assessed and expectations can be formed regarding a firm's ability to continue generating them.
Cash flow growth profile™ The capacity of a firm to generate cash flow as it grows, without referring to specifically whether the cash flow generated is core operating cash flow or sustainable free cash flow. A firm's core operating growth profile™ is the capacity of the firm to generate core operating cash flow as it grows and reflects a combination of its operating cushion and operating working capital requirements, expressed as a percentage of revenue. A firm's free cash growth profile™ is the capacity of the firm to generate sustainable free cash flow as it grows and reflects a combination of its core operating growth profile™, income taxes paid as a % of revenue, and capital expenditures and other investments needed to support operations all expressed as a percentage of revenue. The cash flow growth profile™ is forward looking and reports the amount of cash flow that can be expected for any measured amount of growth in revenue under the assumption that a firm's core operating growth profile™ and/or its free cash growth profile™ remain unchanged. A firm with a positive cash flow growth profile™ can grow operations and produce increasing amounts of cash flow. A firm with a negative cash flow growth profile™ will require other sources of cash to support revenue growth.
Cash flow per diluted common share A cash flow measure divided by the diluted number of common shares outstanding during a reporting period.
Cash Flow Snapshot A Cash Flow Analytics, LLC report designed to provide a quick view of trends in one company's cash flow performance over time or how a company compares with others at a point in time.
Cash flow snapshot A Cash Flow Analytics report designed to provide a quick view of trends in one company's cash flow performance over time or how a company compares with others at a point in time.
Cash flow statement and other sources Sources of data for input to Cash Flow Analytics, LLC reports that come primarily from a company prepared statement of cash flows.
Cash Flow Summary A summary of the components of Sustainable free cash flow.
Cash Flow Summary - Four Quarters Ending A summary of the components of Sustainable free cash flow for a four-quarters ending reporting period.
Cash flow sustainability™ A measure of the sustainability of reported operating cash flow. It is computed as the difference between sustainable operating cash flow and reported operating cash flow expressed as a percent of revenue. Sustainable operating cash flow will typically differ from reported operating cash flow due to various nonoperating and/or nonrecurring items. The inclusion of nonoperating and/or nonrecurring cash flow items in reported operating cash flow will result in readings below 0. The Cash Flow Analysis Statement adjusts for most of these items with entry of company-reported data from the statements of income and balance sheet. However, certain adjustments require additional manual data input. These adjustment items, found on the Statement of Income and Related Data Input spreadsheet, are labeled with an asterisk (*) and the letters (CF Adj). Note that with quarterly financial statements, data necessary for manual input are typically not available. See also: CF Adj; Cash flow adjustment item
Cash from revenue Cash collections from customers for product sales and services provided. Calculated as revenue from core operations adjusted for the change in operating receivables and the change in deferred revenue.
Cash gross margin Cash from revenue minus cash cost of revenue. It is a cash-based measure of gross profit.
Cash impact of change in accruals days The measured effects of the change in accruals days on the change in accruals from one period to the next.
Cash impact of change in capitalized operating expenses days The measured effects of the change in capitalized operating expenses days on the change in capitalized operating expenses from one period to the next.
Cash impact of change in deferred revenue days The measured effects of the change in deferred revenue days on the change in deferred revenue from one period to the next.
Cash impact of change in GM % The measured effects of the change in gross margin % on the change in gross margin (excl. depreciation & amortization) from one period to the next.
Cash impact of change in gross margin % The measured effects of the change in gross margin % on the change in gross margin (excl. depreciation & amortization) from one period to the next.
Cash impact of change in inventory days The measured effects of the change in inventory days on the change in inventory (incl. capitalized interest) from one period to the next.
Cash impact of change in operating cushion % The measured effects of the change in operating cushion % on the change in operating cushion from one period to the next.
Cash impact of change in operating receivables days The measured effects of the change in operating receivables days on the change in operating receivables from one period to the next.
Cash impact of change in operating working capital days The measured effects of the change in operating working capital days on the change in operating working capital from one period to the next.
Cash impact of change in payables days The measured effects of the change in payables days on the change in payables from one period to the next.
Cash impact of change in prepaids days The measured effects of the change in prepaids days on the change in prepaids from one period to the next.
Cash impact of change in R&D % The measured effects of the change in R&D % on the change in research and development expense from one period to the next.
Cash impact of change in receivables days The measured effects of the change in receivables days on the change in operating receivables from one period to the next.
Cash impact of change in SG&A % The measured effects of the change in SG&A % on the change in selling, general and administrative expense (excl. depreciation & amortization) from one period to the next.
Cash impact of changes in operating cushion A summary of the measured effects of changes in the components of operating cushion %, gross margin %, SG&A % and R&D %, on the change in operating cushion from one period to the next.
Cash impact of chgs in capex and investment to revenue % on capex The measured effects of changes in capital expenditures and investment to revenue % on the change from one period to the next in capital expenditures and investment to support operations.
Cash impact of chgs in capex to revenue % on capex The measured effects of changes in capital expenditures to revenue % on the change in capital expenditures from one period to the next.
Cash impact of chgs in investment in ops-related intangibles to revenue % The measured effects of changes in investment in operations-related intangibles to revenue % on the change in investment in operations-related intangibles from one period to the next.
Cash impact of chgs in investment in other ops-related assets to revenue % The measured effects of changes in investment in operations other operations-related assets to revenue % on the change in investment in other operations-related assets from one period to the next.
Cash impact of chgs in operating cushion & operating working capital days The measured effects of the change in operating cushion % on the change in operating cushion from one period to the next plus the measured effects of the change in operating working capital days on the change in operating working capital from one period to the next.
Cash impact of growth The total measured effects of growth in revenue from core operations on various cash flow drivers.
Cash impact of growth and chgs in capex to revenue % on capex The measured effects of growth in revenue from core operations and changes in capital expenditures to revenue % on the change in capital expenditures from one period to the next.
Cash impact of growth and chgs in investment in ops-related intangibles to revenue % The measured effects of growth in revenue from core operations and changes in investment in operations-related intangibles to revenue % on the change in investment in operations-related intangibles from one period to the next.
Cash impact of growth and chgs in investment in other ops-related assets to revenue % The measured effects of growth in revenue from core operations and changes in investment in other operations-related assets to revenue % on the change in investment in other operations-related assets from one period to the next.
Cash impact of growth and chgs in op. cushion and op. working capital days The measured effects of growth in revenue from core operations on changes in operating cushion and operating working capital from one period to the next plus the measured effects of changes in operating cushion % on the change in operating cushion from one period to the next and the effects of changes in operating working capital days on the change in operating working capital from one period to the next.
Cash impact of growth on accruals The measured effects of growth in revenue from core operations on the change in accruals from one period to the next.
Cash impact of growth on capex The measured effects of growth in revenue from core operations on the change in capital expenditures from one period to the next.
Cash impact of growth on capex and investment The measured effects of growth in revenue from core operations on the change from one period to the next in capital expenditures and investment to support operations.
Cash impact of growth on capital expenditures The measured effects of growth in revenue from core operations on the change in capital expenditures from one period to the next.
Cash impact of growth on capitalized operating expenses The measured effects of growth in revenue from core operations on the change in capitalized operating expenses from one period to the next.
Cash impact of growth on deferred revenue The measured effects of growth in revenue from core operations on the change in deferred revenue from one period to the next.
Cash impact of growth on gross margin The measured effects of growth in revenue from core operations on the change in gross margin from one period to the next.
Cash impact of growth on inventory The measured effects of growth in revenue from core operations on the change in inventory from one period to the next.
Cash impact of growth on investment in ops-related intangibles The measured effects of growth in revenue from core operations on the change in investments in operations-related intangibles from one period to the next.
Cash impact of growth on investment in other ops-related assets The measured effects of growth in revenue from core operations on the change in investment in other operations-related assets from one period to the next.
Cash impact of growth on operating cushion The measured effects of growth in revenue from core operations on the change in operating cushion from one period to the next.
Cash impact of growth on operating payables The measured effects of growth in revenue from core operations on the change in operating payables from one period to the next.
Cash impact of growth on operating receivables The measured effects of growth in revenue from core operations on the change in operating receivables from one period to the next.
Cash impact of growth on operating working capital The measured effects of growth in revenue from core operations on the change in operating working capital from one period to the next.
Cash impact of growth on other ops-related assets The measured effects of growth in revenue from core operations on the change in investment in other operations-related assets from one period to the next.
Cash impact of growth on prepaids The measured effects of growth in revenue from core operations on the change in prepaids from one period to the next.
Cash impact of growth on R&D The measured effects of growth in revenue from core operations on the change in R&D from one period to the next.
Cash impact of growth on SG&A The measured effects of growth in revenue from core operations on the change in SG&A from one period to the next.
Cash impact on capital expenditures The measured effects of growth in revenue from core operations and changes in capital expenditures to revenue % on capital expenditures.
Cash impact on investment in operations-related intangibles The measured effects of growth in revenue from core operations and changes in investment in operations-related intangibles to revenue % on investment in operations-related intangibles.
Cash impact on investment in other ops-related assets The measured effects of growth in revenue from core operations and changes in investment in other operations-related assets to revenue % on investment in other operations-related assets.
Cash impacts on accruals The measured effects of growth in revenue from core operations and changes in accruals days on the change in accruals from one period to the next.
Cash impacts on capitalized operating expenses The measured effects of growth and changes in capitalized operating expenses days on the change in capitalized operating expenses from one period to the next.
Cash impacts on deferred revenue The measured effects of growth in revenue from core operations and changes in deferred revenue days on the change in deferred revenue from one period to the next.
Cash impacts on gross margin (excl. depreciation & amortization) The measured effects of growth in revenue from core operations and changes in GM % on the change in gross margin (excl. depreciation & amortization) from one period to the next.
Cash impacts on inventory The measured effects of growth in revenue from core operations and changes in inventory days on the change in inventory from one period to the next.
Cash impacts on operating cushion The measured effects of growth in revenue from core operations and changes in profitability, namely gross margin %, SG&A % and R&D %, on changes in operating cushion from one period to the next.
Cash impacts on operating payables The measured effects of growth in revenue from core operations and changes in operating payables days on the change in operating payables from one period to the next.
Cash impacts on operating receivables The measured effects of growth in revenue from core operations and changes in operating receivables days on the change in operating receivables from one period to the next.
Cash impacts on operating working capital The measured effects of growth in revenue from core operations and changes in operating working capital days on the change in operating working capital from one period to the next.
Cash impacts on prepaids The measured effects of growth in revenue from core operations and changes in prepaids days on the change in prepaids from one period to the next.
Cash impacts on research and development The measured effects of growth in revenue from core operations and changes in R&D % on the change in research and development expense from one period to the next.
Cash impacts on SG&A (excl. depreciation & amortization) The measured effects of growth in revenue from core operations and changes in SG&A % on the change in selling, general and administrative expense (excl. depreciation & amortization) from one period to the next.
Cash operating expense Cash paid for sales and marketing, general and administrative, and research and development expenditures. It is calculated as selling, general and administrative expense (excluding depreciation and amortization) plus research and development expense, adjusted for changes in capitalized operating expenses, prepaids and accruals.
CF Adj An abbreviation to indicate that the input is a cash flow adjustment item. There are numerous nonoperating and nonrecurring items for which reported operating cash flow should be adjusted before it is used in analysis. The Cash Flow Analysis Statement adjusts for most of these items with entry of company-reported data from the statements of income and balance sheet. However, certain adjustments require additional manual data input. These adjustment items, found on the Statement of Income and Related Data Input spreadsheet, are labeled with an asterisk (*) and the letters (CF Adj). Note that with quarterly financial statements, data necessary for manual input are typically not available. See also: Cash flow adjustment item
CF Drivers Abbreviation for Cash Flow Drivers Report.
CFA Score™ The Cash Flow Analytics, LLC proprietary model stock selection score. The score ranges from 0 to 7. In their research paper, An Examination of Abnormal Returns Generated by the Cash Flow Analytics Proprietary Model, Jonathan Clarke and Charles Mulford demonstrate that stocks with scores of 0 or 1 significantly under-performed a size-based index while stocks with scores of 6 or 7 significantly out-performed a size-based index. Stocks with scores of 2 or 3 moderately under-performed and stocks with scores of 4 or 5 moderately out-performed a sized-based index.
CFA Score™ (Four Quarters Ending) The Cash Flow Analytics Score™ measured for a four-quarters ending reporting period.
CFA Stmts Abbreviation for Cash Flow Analysis Statement.
Change in accounting principle (gain) loss Income from operations and the gain or loss on disposal of a discontinued business segment or separately measured business unit. It is reported after income tax effects have been subtracted. On the cash flow statement (indirect method) the account balance is removed from net income (loss) in computing Income (loss) from continuing operations. See also: Discontinued operations
Change in accounting principle gain (loss) The cumulative, prior-years income effect of a change in accounting principle. It is reported after income tax effects have been subtracted. On the cash flow analysis statement the account is used in computing other nonrecurring cash receipts (disbursements), a component of investment of sustainable free cash flow.
Change in accruals The period-to-period increase or decrease in operating costs or expenses that have been incurred but not paid. An increase in accruals, a liability, is a source of cash; a decrease is a use of cash. See also: Accruals
Change in accum other comprehensive income (loss) from investments A source or (use) of cash arising from the increase or decrease in accumulated other comprehensive income or (loss) related to available-for-sale investments.
Change in accumulated other comprehensive income A term used on the cash flow analysis statement that refers to the change in accumulated other comprehensive income between reporting periods.
Change in additional minimum pension liability A source or (use) of cash arising from the period-to-period increase or decrease in the additional minimum pension liability.
Change in balance sheet adjustment The period-to-period change in the balance sheet adjustment account. On the cash flow analysis statement, an increase is a source of cash and a decrease is a use of cash included in Other equity-related financing in the Financing transactions section.
Change in capitalized debt-issue costs The period-to-period increase or decrease in capitalized debt-issue costs. An increase in capitalized debt-issue costs, an asset, is a use of cash; a decrease is a source of cash.
Change in capitalized operating expenses The period-to-period increase or decrease in capitalized operating expenses, or assets to be amortized against future revenue. An increase in capitalized operating expenses is a use of cash; a decrease is a source of cash. See also: Capitalized operating expenses
Change in cash and equivalents The actual change in cash and equivalents during a reporting period. It can be calculated as the ending balance in cash and equivalents less the beginning balance.
Change in cash and equivalents after financing The actual change in cash and equivalents during a reporting period. It can be calculated as the ending balance in cash and equivalents less the beginning balance. It can also be calculated as the change in cash and equivalents before external financing plus cash provided from external financing less cash used in external financing.
Change in cash before external financing Sustainable free cash flow less investments of sustainable free cash flow. It is the change in cash and equivalents excluding the effects of any external financing. See also: Change in cash and equivalents before financing
Change in common equity The period-to-period change in common equity. On the cash flow analysis statement, an increase is a source of cash and a decrease is a use of cash reported as Common equity financing in the Financing transaction section.
Change in deferred revenue The period-to-period increase or decrease in revenue that is collected in advance of being earned. An increase in deferred revenue, a liability, is a source of cash; a decrease is a use of cash. See also: Deferred revenue
Change in deferred tax assets The period-to-period increase or decrease in future tax benefits resulting from deductible temporary differences or loss or tax-credit carryovers. An increase in deferred tax assets is a use of cash; a decrease is a source of cash. See also: Deferred tax assets
Change in deferred tax assets to income before income taxes (On the change in deferred tax assets) The measured effects of the change in deferred tax assets to income before income taxes on the change in deferred tax assets from one period to the next.
Change in deferred tax liabilities The period-to-period increase or decrease in future tax obligations resulting from taxable temporary differences. An increase in deferred tax liabilities is a source of cash; a decrease is a use of cash. See also: Deferred tax liabilities
Change in deferred tax liabilities to income before income taxes (On the change in deferred tax liabilities) The measured effects of the change in deferred tax liabilities to income before income taxes on the change in deferred tax liabilities from one period to the next.
Change in dividends payable The period-to-period change in dividends payable. On the cash flow analysis statement, an increase is a source of cash and a decrease is a use of cash reported as Dividends on common stock in the Financing transactions section.
Change in effective tax rate (On the change in income tax (expense) benefit) The measured effects of the change in the effective tax rate on the change in income tax (expense) benefit from one period to the next.
Change in goodwill and acquisition-related intangibles, net The period-to-period change in goodwill and acquisition-related intangibles, net. On the cash flow analysis statement, a decrease is a source of cash and an increase is a use of cash reported in the Investment of sustainable free cash flow section.
Change in gross margin (excl. depreciation and amortization) The period-to-period increase or decrease in gross margin (excl. depreciation and amortization). An increase in gross margin (excl. depreciation and amortization) is a source of cash, a decrease is a use of cash.
Change in income tax (expense) benefit The period-to-period increase or decrease in income taxes (paid) or recovered resulting from a change in the total (provision) benefit for income taxes.
Change in income taxes payable The period-to-period increase or decrease in income taxes presently due and payable to a taxing authority. An increase in income taxes payable, a liability, is a source of cash; a decrease is a use of cash. See also: Income taxes payable
Change in income taxes payable to income before income taxes (On the change in income taxes payable) The measured effects of the change in income taxes payable to income before income taxes on the change in income taxes payable from one period to the next.
Change in intangible pension asset The (use) or source of cash arising from an increase or decrease in an intangible asset related to a company's pension plan.
Change in interest payable The period-to-period increase or decrease in amounts due for interest incurred. An increase in interest payable, a liabilities, is a source of cash; a decrease is a use of cash.
Change in inventory The period-to-period increase or decrease in the cost of goods held for resale in the ordinary course of operations as reported on the cash flow analysis statement. An increase in inventory, an asset, is a use of cash; a decrease is a source of cash. The change in inventory from one period to the next is adjusted for interest capitalized and for any provision for inventory impairment. For example, an increase in inventory from one period to the next is reduced for interest capitalized to inventory, which is also used to adjust upward interest paid. An increase in inventory is also adjusted upward for any provision for impairment of inventory, which is used to reduce cost of revenue. See also: Change in inventory; Inventory; Inventory (incl. capitalized interest)
Change in inventory (incl. capitalized interest) The increase or decrease in inventory resulting in a (use) or source of cash, calculated to include the effects of capitalized interest, if any.
Change in inventory on balance sheet The period-to-period increase or decrease in the cost of goods held for resale in the ordinary course of operations as reported on the balance sheet, excluding adjustments for interest capitalized to inventory and any provision ofr inventory impairment. An increase in inventory, an asset, is a use of cash; a decrease is a source of cash. See also: Change in inventory; Inventory; Inventory (incl. capitalized interest)
Change in inventory on cash flow analysis statement The period-to-period increase or decrease in the cost of goods held for resale in the ordinary course of operations. An increase in inventory, an asset, is a use of cash; a decrease is a source of cash. The change in inventory from one period to the next is adjusted for interest capitalized and for any provision for inventory impairment. For example, an increase in inventory from one period to the next is reduced for interest capitalized to inventory, which is also used to adjust upward interest paid. An increase in inventory is also adjusted upward for any provision for impairment of inventory, which is used to reduce cost of revenue. See also: Change in inventory; Inventory; Inventory (incl. capitalized interest)
Change in investments in other assets The period-to-period change in other unidentified assets. On the cash flow analysis statement, an increase is a use of cash and a decrease is a source of cash as reported in the Investment of sustainable cash flow section.
Change in leverage The one-year change in leverage measured as a percentage of the previous year's amount. Leverage is measured as total borrowings divided by shareholders' equity. When shareholders' equity is a negative amount, leverage is reported as NM. The change in leverage from a positive to a negative amount or from a negative amount to a more negative amount is reported as an increase in leverage. The change in leverage from a negative amount to a less negative or positive amount is reported as a reduction in leverage.
Change in long-term financing obligations The period-to-period change in long-term financing obligations. On the cash flow analysis statement, an increase is a source of cash and a decrease is a use of cash reported as Long-term debt financing in the Financing transactions section.
Change in long-term investments The period-to-period change in the balance in long-term investments. On the cash flow analysis statement, an increase is a use of cash and a decrease is a source of cash reported in the Investment of sustainable free cash flow section.
Change in minority interest in equity The period-to-period change in minority interest in equity. On the cash flow analysis statement, an increase is a source of cash and a decrease is a use of cash reported as Other equity-related financing in the Financing transactions section.
Change in net assets of discontinued operations The period-to-period change in net assets of a discontinued business segment or unit. On the cash flow analysis statement the account balance decline is reported as disposition of discontinued operations, a source of cash, in the Investment of sustainable free cash flow section.
Change in operating cushion The period-to-period increase or decrease in operating cushion. An increase in operating cushion is a source of cash, a decrease is a use of cash. See also: Operating cushion
Change in operating payables The period-to-period increase or decrease in amounts due vendors, including accounts payable and notes payable, for purchases made. An increase in operating payables, a liability, is a source of cash; a decrease is a use of cash. See also: Operating payables
Change in operating receivables The period-to-period increase or decrease in amounts due from customers, including accounts receivable and notes receivable, as reported on the cash flow analysis statement. An increase in operating receivables, an asset, is a use of cash; a decrease is a source of cash. The change in operating receivables from one period to the next is adjusted for any provision for doubtful receivables. For example, an increase in operating receivables is adjusted upward for a provision for doubtful receivables, which is also used to reduce selling, general and administrative expense. See also: Change in operating receivables; Operating receivables
Change in operating receivables before provision for writedown of receivables The increase or decrease in operating receivables resulting in a (use) or source of cash, calculated before a writedown, if any, of the underlying receivables.
Change in operating receivables on balance sheet The period-to-period increase or decrease in amounts due from customers, including accounts receivable and notes receivable as reported on the balance sheet. Excluded is the effect on operating receivables of the provision for doubtful receivables incl. in SG&A. An increase in operating receivables, an asset, is a use of cash; a decrease is a source of cash.
Change in operating receivables on cash flow analysis statement The period-to-period increase or decrease in amounts due from customers, including accounts receivable and notes receivable, as reported on the cash flow analysis statement. An increase in operating receivables, an asset, is a use of cash; a decrease is a source of cash. The change in operating receivables from one period to the next is adjusted for any provision for doubtful receivables. For example, an increase in operating receivables is adjusted upward for a provision for doubtful receivables, which is also used to reduce selling, general and administrative expense. See also: Change in operating receivables; Operating receivables
Change in operating working capital The period-to-period increase in operating working capital, or assets, including operating receivables, inventory, prepaids and capitalized operating expenses, that are used in operations less liabilities, including deferred revenue, operating payables, and accruals, that are incurred in operations. An increase in operating working capital is a use of cash, a decrease in operating working capital is a source of cash. See also: Operating working capital
Change in other mezzanine interests The period-to-period change in other mezzanine interests, items not included with liabilities or shareholders' equity. On the cash flow analysis statement, an increase is a source of cash and a decrease is a use of cash as Other equity-related financing in the Financing transactions section.
Change in other operations-related liabilities A source or (use) of cash resulting from an increase or decrease in other unidentified operations-related liabilities.
Change in prepaids The period-to-period increase or decrease in costs or expenses that have been paid in advance of being incurred. An increase in prepaids, an asset, is a use of cash; a decrease is a source of cash. See also: Prepaids
Change in property, plant and equipment, net The period-to-period increase or decrease in the book value of property, plant and equipment, or property, plant and equipment at cost less accumulated depreciation. An increase in property, plant and equipment, an asset, is a use of cash used in the calculation of capital expenditures; a decrease is a source of cash. See also: Property, plant and equipment, net
Change in research and development expense The period-to-period increase or decrease in research and development expense. An increase in R&D is a use of cash, a decrease is a source of cash.
Change in restructuring and merger-related reserve The source or (use) of cash resulting from an increase or decrease in a restructuring or merger-related reserve liability.
Change in SG&A expense (excl. depreciation and amortization) The period-to-period increase or decrease in selling, general and administrative expense (excl. depreciation and amortization). An increase in SG&A expense (excl. depreciation and amortization) is a use of cash, a decrease is a source of cash.
Change in short-term investments and trading securities The period-to-period change in the balance in short-term investments and trading securities. On the cash flow analysis statement, an increase is a use of cash and a decrease is a source of cash as reported in the Investment of sustainable free cash flow section.
Change in tax refund receivable The period-to-period increase or decrease in a refund due from a taxing authority for income taxes paid in excess of amounts due. An increase in a tax refund receivable, an asset, is a use of cash; a decrease is a source of cash. See also: Tax refund receivable
Change in tax refund receivable to income before income taxes (On the change in tax refund receivable) The measured effects of the change in tax refund receivable to income before income taxes on the change in the tax refund receivable from one period to the next.
Changes in Current Debt Sources or (uses) of cash from issuing or repaying short-term debt as carried on the company-reported indirect method statement of cash flows.
Closing market price per share of common stock The closing price on the last day of trading for the current period. Closing price is used in computing ratios measuring valuation.
Commercial paper and financing-related notes payable Short-term financing obligations, including notes payable, negotiable instruments, and other forms of short-term borrowings. On the cash flow analysis statement the account is used in computing short-term debt financing, a component of financing transactions.
Common dividends declared The dollar amount of dividends declared on common stock during the reporting period.
Common equity A corporation's residual ownership claims, including common stock, additional paid-in capital, retained earnings, accumulated other comprehensive income, other shareholders' equity, less stock held in treasury.
Common equity financing Net proceeds from the issue of common stock. Changes in deferred compensation and subscription notes receivable are included in this caption.
Common equity-related financing A term used exclusively on the quarterly cash flow analysis statement to denote all financing related to common shareholders. Included in this caption are common stock and additional paid-in capital, other positive (negative) equity accounts, stock held in (treasury), other equity-related financing, (which includes minority interest in (income) loss, change in minority interest in equity, change in other mezzanine interests, and change in balance sheet adjustment), other inc (dec) in retained earnings, (which includes the change in retained earnings unexplained by net income (loss), dividends on preferred stock paid in cash, and dividends on common stock paid in cash), option and non-cash compensation expense incl. in SG&A, and interest paid with common stock.
Common Size Balance Sheet A Cash Flow Analytics, LLC report designed to show all line items of the balance sheet measured as a percentage of total assets.
Common Size Cash Flow Analysis Statement A Cash Flow Analytics, LLC report designed to show all line items of the cash flow analysis statement measured as a percentage of revenue from core operations.
Common Size Statement of Income A Cash Flow Analytics, LLC report designed to show all line items of the statement of income measured as a percentage of revenue from core operations.
Common stock The dollar amount of an entity's legal capital represented by the par value, stated value or, for common stock without a par value or stated value, the proceeds received upon the issue of shares. Common stock represents one component of common shareholders' claims on the assets, earnings and cash flows of an entity resulting from amounts paid in when shares were issued to them. On the cash flow analysis statement the account is used in computing common equity financing, a component of financing transactions.
Common stock and additional paid-in capital Used for quarterly financial statements, the combination of common stock, the dollar amount of an entity's legal capital represented by the par value, stated value or, for common stock without a par value or stated value, the proceeds received upon the issue of shares plus additional paid-in capital, the dollar amount of an entity's capital paid in by common shareholders in excess of that amount considered to be legal capital. Netted against common stock and additional paid-in capital for quarterly financial statements are deferred compensation and subscription notes receivable.
Common stock dividend paid in stock The dollar amount of shares of common stock issued in lieu of the cash payment of dividends on common stock. On the cash flow analysis statement the account is used in computing dividends on common stock, a component of financing transactions and in computing common equity financing, a component of financing transactions.
Company reported cash flows: Cash provided (used) by operating activities, investing activities and financing activities as actually reported by the company. Also reported is the effects of exchange rate changes on cash.
Company reported net income (loss) Net income (loss) as reported by the company. The account is used as a data-entry check. A warning indicator is given when calculated net income (loss) is not equal to company reported net income (loss). When the two amounts are not equal, reasons for the difference should be identified and resolved.
Condensed Quarterly Balance Sheet A Cash Flow Analytics, LLC report designed to report a firm's financial position as of the end of a quarterly reporting period with particular emphasis on assets and liabilities that are central to a firm's cash flow generations, including operating working capital asset and operating working capital liabilities, other operations-related assets and other investing-related assets, other operations-related liabilities and other financing-related liabilities. Because of reduced disclosures available for interim financial statements, certain line items on the quarterly balance sheet are combined.
Condensed Quarterly Cash Flow Analysis Statement A Cash Flow Analytics, LLC quarterly report designed to facilitate analysis that provides multiple partitions of the overall change in cash and cash equivalents and highlight sustainable and nonrecurring sources and uses of cash. The statement is a combination of the direct and indirect cash flow formats, showing the reconciliation of key items from the statement of income to their cash flow counterparts. Important subtotals on the cash flow analysis statement include Core operating cash flow, Sustainable operating cash flow, and Sustainable free cash flow. Because of reduced disclosures available for interim financial statements, certain line items on the quarterly cash flow analysis statement are combined.
Condensed Quarterly Cash Flow Analysis Statement Supporting Detail Calculations supporting amounts reported on the quarterly cash flow analysis statement.
Condensed Quarterly Statement of Income A Cash Flow Analytics, LLC report designed to show the results of profit-directed activities over a quarter with a particular emphasis on sources of sustainable income. The statement highlights the results of core operations, including revenue from core operations, gross profit from core operations and operating profit from core operations, and the results of non-core operations, including other income (expense) recurring and other income (expense) nonrecurring. Because of reduced disclosures available for interim financial statements, certain line items on the quarterly statement of income are combined.
Core cash margin™ CCM™
Core operating cash flow Cash flow generated by core or central operations, before income taxes, other cash receipts and disbursements and before the payment of interest on borrowed funds. It is calculated as cash gross margin less cash operating expense.
Core operating cash flow (in revenue days) Input data for Cash Flow Analytics, LLC forecast reports that relate to operating working capital assets and liabilities and determine a forecast cash cycle.
Core operating cash flow growth rate The percentage change in core operating cash flow from one period to the next.
Core operating cash flow growth rate (over same quarter previous year) The percentage change in core operating cash flow between the same quarter the previous year and the current quarter.
Core operating growth profile™ The capacity of a firm to generate core operating cash flow as it grows reflecting a combination of its operating cushion and operating working capital requirements, expressed as a percentage of revenue. It is measured as operating cushion % less operating working capital to revenue %. It is forward looking and reports the amount of core operating cash flow that can be expected for any measured amount of growth in revenue under the assumption that a firm's current mix of operating cushion and operating working capital remains unchanged. A firm with a positive operating growth profile™ can grow operations and produce increasing amounts of core operating cash flow. A firm with a negative operating growth profile™ will require other sources of cash to support revenue growth.
