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what's “ earnings growth has lagged behind cash flow" ?

This topic has 4 replies, 3 voices, and was last updated 10 years ago by syedazmat.

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April 30, 2014 at 11:05 am #166876
juliusbj
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As from paper of Dec 2007, Q4, at the end of paragrahph 2 of question, there’s discription “ earnings growth has lagged behind cash flow”. anyone know what’s that mean? Thanks.
BTW, theres’s statement “cash flow generation is still strong”. i wonder what imply that, i can’t find the support. thank you
May 6, 2014 at 3:15 am #167579
sameed
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From what I can gather.
As the company is recognizing revenue with caution, probably a bit later than normal so earnings i.e sales less costs is taking more time now to appear in the financial statements than actuality, since in reality these sales are being made and payments being recieved in company’s bank account so cashflow is being generated earlier now.
May 7, 2014 at 3:52 am #167712
juliusbj
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Thanks, you mean that they even get funds in ahead of revenue recognized ,right?
May 7, 2014 at 5:57 pm #167814
sameed
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Yes I think that’s the case.
May 16, 2014 at 10:15 pm #169123
syedazmat
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As discussed in pastpaper, it may be that the management is delibarately hiding its earnings (recognising with caution) but the market is unlikely to be fooled for long if they’re doing this… !
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