Hallelujah, the Savior Has Come
Merry Christmas, friends! We are but 2 weeks away from celebrating the first coming of the Lord Jesus Christ. […]
Happy Thanksgiving, Friends!
Thanksgiving 2021 is upon us. How the years roll by! But rich are the blessings of life!! […]
Today: Quality of Balance Sheet Never More Important
Hey Friends. I hope this post finds you well.
As you know, my book, “Choose Stocks Wisely,” emphasizes the key role the balance sheet plays in assessing risk. If one wants to see how sturdy a company is financially, how able to weather a financial storm, how able to take advantage of opportunity that presents itself, etc., that person will surely seek out the information found on the balance sheet. It can’t be found on the income statement or the statement of cash flows. These latter 2 reports give a person information on recent business activity that may provide some sense of a business’s future prospects and their possible impact to the balance sheet. But only the balance sheet says “here’s where things stand today.” […]
Retained Earnings — What exactly is it??
Hey friends. The Fall season is already upon us. Of course, we know that Thanksgiving and Christmas will also be upon us soon. Yes, time races by as the Scripture says. May God bless you with His wisdom in your comings and goings. […]
Final Thoughts On Cash Flow from Operations
Hello Friends, I hope this post finds you doing well. It is one of those “a bit under the weather” days for me and today’s closure of the cash flow from operations theme will be relatively brief. […]
A Pause and Call to Prayer
Friends, the series on the operating section of the Statement of Cash Flows will be resumed next time. While I had planned to continue today with a fifth post in the series, we will delay it due to unforeseen events. […]
Cash Flow from Operations: A Misnomer
Hey friends. I pray the Lord protect you from this new COVID strain that is circulating now. These are different times from what we’ve all known for many years. God is still on His throne and is able to provide what we need when we put our trust in Him.
This post continues the cash flow from operations theme. Note the title of the post today describes the terminology “cash flow from operations” as a wrong or inaccurate expression. Indeed, the latter portion of my prior blog post pointed out that there are no actual operating cash flows shown on the face of the Statement of Cash Flows (SCF) as presented according to the “indirect” approach. Also, recall the prior post’s comment that virtually all companies report operating cash flow using the indirect method. So, when you and I look at the SCF for the inflows and outflows of cash from doing business (operations), we don’t actually see those flows. […]
Cash Flows from Operations: Direct or Indirect Presentation?
Hey Friends,
Today, we consider the Operating Section of the Statement of Cash Flows in a bit more detail. You’ll read about the behind-the-scenes politics of how we got to the current presentation of operating cash flow on the Statement of Cash Flows (SCF). […]
Cash Flow From Operations
Hey Friends,
I didn’t write my book, “Choose Stocks Wisely,” to advocate individual stock investing. Rather, I wrote it to communicate how imperative it is to analyze a company’s balance sheet before investing in any publicly traded stock. There is no substitute for the balance sheet in proper risk assessment. I appreciate each of you for reading my book and my blog posts, and for telling those in your circles who already invest in common stocks about my book. […]