"Research finds that Earnings are a better predictor of future cash flow than Current Cash Flow from Operations" How much do you agree and why ?

I think I can agree to this statement.

Why, because we can base future operations with what you have earned today, you either improve or limit your operational expenses and therefore can predict or forecast your tomorrow's cash flow. Isn't it?

I don't know if this is true or not.

However, I can make one comment.  Cashflow is a purely historical metric: it only measures things which happened in the past.  Earnings, on the other hand, contain a predictive component: depreciation. 

If a company buys a lot of plant and machinery, cashflow will probably be poor or negative because all of the cost of the plant will be in the cashflow.  Earnings will not be hit so badly because only a proportion of the expense will be considered.  In the future, earnings and cashflow will be both be higher because of the income generated from plant and machinery. 

Thanks Mr. Fathy for always putting forth such 'Brainstorming' questions.

I fully endorse answer given by Mr. Randy Jumaquio.

I agree with Randy's observation!

More well as Prediction is required for future and Findings are for the past but neither for current.

Thanks for the invitation, I  agree with all answers

I do not agree,

A company can make profits and be in a situation of default, just as the origin of its result there is too high a proportion of transactions that have not resulted in cash inflows, it has for example increased its sales terms and that customers do not pay.

Conversely, the company may realize losses or decrease its results, while having a cash surplus. It can for example have invested, so it has important amortissments that decrease its results or cause loss as it sees return the funds of a significant sale made during term of the prior year.

Thanks for the invite ............................ Leave an answer for Accountants

I fully agree & endorse mr. Nadjib & mr.Duncan's classic & constructive submissions, they make alot of sense & depeak different perspectives.

Thanx for the invitation

Agree with expert ansewrs above