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.