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The so-called "cash flow" (net income plus depreciation) is a flow of cash, but is it a flow to the shareholders or to the company?

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Question added by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town
Date Posted: 2014/03/16
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Assuming that net income plus depreciation is a flow is an enormous mistake. It would be surprising if someone took the sum of two parameters whose meaning is doubtful and whose magnitude is discretional and called it a “cash flow.”

 

Muhammad Ikram
by Muhammad Ikram , Financial Contorller , Sparq Systems Inc.

No

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