Onetime nonrecurring gains due to dividends received or trading gains

CFO technically includes two cash flow items that analysts often re-classify into cash flow from financing (CFF) (1) dividends received from investments and (2) gains losses from trading securities (investments that are bought and sold for short-term profits). If you find that CFO is boosted significantly by one or both of these items, they are worth examination. Perhaps the inflows are sustainable. On the other hand, dividends received are often not due to the company's core operating business...

By David Harper

Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. 3 The Financial Statements Are a System Whether you watch analysts on CNBC or read articles in the Wall Street Journal, you'll hear experts insisting on the importance of doing your homework before investing in a company. In other words, investors should dig deep into the company's financial statements and analyze everything from the auditor's report to the footnotes. But...

Statement of Cash Flows

Cfo Cfi Cff

The statement of cash flows may be the most intuitive of all statements. We have already shown that, in basic terms, a company raises capital in order to buy assets that generate a profit. The statement of cash flows follows the cash according to these three core activities 1 cash is raised from the capital suppliers which is the 'cash flow from financing', or CFF , 2 cash is used to buy assets 'cash flow from investing', or CFI , and 3 cash is used to create a profit 'cash flow from...