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Free cash flow

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Alligator
    24-Oct-2008 10:39  
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you may read the other two links with slightly different explanation. Take your time to learn.

External links



 
 
 
onghockyong
    24-Oct-2008 10:28  
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Hi,bro and sis,thks a lot.


 Thks .But I still not really understand.

Free cash flow =total current asset -total current liabities .or

                        =cash and cash eql for the period  or what else?

Because some financial reports show that they have cash and cash eql but also have huge debt.The current assets<current liabities.But they still say they have free cash flow(they refer to the cash and cash eql)???confuse!!!!

 Anyone can advice..(I 'm engineering background,not good in account).Thks in advance.






 
 
sgdividends
    24-Oct-2008 09:45  
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Hi ,onghockyong
You can check out this analysis where we calculate Free Cash Flow. In our blog, we calculate free cash flow for the companies we look at. ( we call free cash flow as money in money out ( cos we dont like jargon)

source: www.sgdividends.blogspot.com

ST Engineering...Is Engineering a lousy choice in Uni?

As of half time 21/10/2008 , ST Engineering is in the top 20 loser counters. Is it because engineering is dead?(go to salary.sg to read more, we are refering to a career in engineering, just to clarify)!

Since the last financial statements, they have been winning:
ST ENGINEERING WINS US$58M MSD-V2 ORDERS FROM US ARMY
ST ENGINEERING’S US SHIPYARD SIGNS PHASE II OF FAST MISSILE CRAFT PROJECT ADDS A FURTHER US$406.5M TO TOTAL CONTRACT VALUE
ST ENGINEERING’S AEROSPACE ARM PROVIDES RSAF TRAINING WORTH S$105M
ST ENGINEERING’S ELECTRONICS ARM WINS S$112M CONTRACT FROM LAND TRANSPORT AUTHORITY .......E.T.C
PLUS.....

Sounds good to look at....but is it good to eat? Let's us investigate.

Gross Profit Margin: 22.6%
Net Profit Margin: 9.39% ( Do you think its high?)

Debt repayment muscle: CA more than CL @ 1.09

Cheapskateness:NAV at 47cents . Last done price now is: $2.34. ( wah still quite glam sia)


Money in Money out: Cash flow from Operation is positive but Free cash flow is negative. (Net cash from operating activities - purchase of property, plant and equipment)

No wonder Engineers are paid so low...relatively..

Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team
 

 
Alligator
    23-Oct-2008 22:47  
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nowaday wikipedia is very useful and convenience for us to find definition . here is the link to your question. hope that is useful for you too


http://en.wikipedia.org/wiki/Free_cash_flow
 
 
onghockyong
    23-Oct-2008 22:22  
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Can any bro or sis can advice what does it mean free cash flow?How can we calculate the company free cash flow?Thks
 
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