No. of Recommendations: 1
Hi guys
Not sure where to post this so I put it here.

I have just finished reading the Motley fool workbook.
On page 120 cash flow statement analysis- it says the statement will start with operating profit from the profit and loss ssheet. But all the cash flow statements I look at start with net profit?
Have the rules changed? The book was written in 1999.

It also talks about the cash conversion ratio. Which Is net cash from operations ÷ operating profit and advised good companies aim to convert 100% operating profit to cash.

How can this be as tax has to come off of operating profit?

Again not sure if this is the right forum but was told you guys kinda took over from where Motley fool left off.

Print the post  


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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.