Dual cash flow
“Dual cash flow” is computed as part of the “tabulate ratios ” function. Here is the dual cash flow section for
Intel:
“Dual
cash flow” separates the operating cash flow from the balance sheet
cash flow. The idea is to figure out where a company’s cash flow is
coming from, either operating income or the balance sheet.
1. Change in net worth is simply the net worth for the current period minus the net worth for the prior period.
2. Change in growth-producing assets measures the change in property, plant, equipment, inventory, and acquisitions from the prior period.
3. Operating cash flow
is simply change in net worth minus the change in growth-producing
assets. It is different from operating cash flow as computed in the
free cash flow section.
4. Balance sheet cash flow is computed by subtracting the change in accounts receivable from the change in current and long-term liabilities.
5. Dual cash flow is simply operating cash flow minus balance sheet cash flow.
Each of the above computations is also expressed as a percentage of current period sales.
Spredgar Software's
mission is to
provide
unbiased financial investment data for the
private investor, the professional analyst, and the academic.
Gordon
Gerwig, founder of Spredgar Software, has a B.S. in Electrical Engineering and Computer Science from the University of
California at Berkeley and an M.B.A. in Finance from the University of
California at Davis.
Gordon Gerwig and Spredgar
Software have been written up in
Online
Investing for Dummies,
Online Investing
Hacks, and
in the
Innovator, the U.C. Davis Graduate School of
Management's alumni magazine. Gordon
is an individual investor and a member of the American Association of Individual Investors
(AAII).
He is a CERTIFIED FINANCIAL
PLANNER, a
Licensed International
Financial Analyst (LIFA) , and
is an associate member of the
CFA Institute. He has worked in
financial services as a advisor for Morgan Stanley and American Express. He has
experience in small business lending, valuation and consulting.
