Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: FoolishJayhawk Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 321  
Subject: Cash Flow RED Flag? Date: 8/21/2008 5:22 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Anyone here looked at the latest Cash Flow statements? Starting in 2007, HMC started adding a "Purchase of operating lease assets" line item to the "Cash flows from investing activities" portion of the CF statement.

The problem is that it is eating into FCF like bacteria. In 2007, the figure was about -$3.7B, and in 2008 it was -8.4B. In 2009Q1, it was -$2.6B.

This line item did not exist pre-2007.

It's not clear to me exactly what this refers to. If I read the statement correctly, it seems to be the value of vehicles that were leased are now being returned, which HMC is adding to their balance sheet. If so, is this simply an accounting adjustment or is HMC actually dishing out the cash? Does this concern anyone?

Any expertise on the matter is greatly appreciated!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Russia Collapsing Again?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement