GWV 007: Cash Flow
Play • 19 min

Today we will be talking about a company’s Cash Flow and how to calculate it by using the Cash Flow Statement. We will also look at earnings as reported on the Income Statement. We will compare the two figures to understand the difference between Cash Flow and Earnings. I will also provide a run down on the difference between the Income Statement and Cash Flow Statement. A final point we will be covering is Owner Earnings, this is another earnings figure used by Warren Buffett when he calculates the Intrinsic Value of a business.

You will find I have a checklist in my Value Investing Spreadsheet that will help investors look for any manipulation in relation to falsely recording Earnings and Cash Flow that may be attempted by management. I have a link to download this spreadsheet and checklist: 

https://growthwithvalue.com/tools/ 

GuruFocus is a site which provides vast amounts of data and 30 years worth of financial reports, they also include many of the great Value Investors’ formulae within their historical financial data. Here is a link to the website. 

https://www.gurufocus.com 

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