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QuestionsCategory: Stock ScreeningCash flow to Net Income Ratio for Silverlake Axis
Jayden Lee asked 3 years ago

Hi Rusmin,
I would like to refer to the flow chart you guys provided under checklist.
One of the criteria is that Cash flow to Net Income Ratio has to be at least 0.8 for the past 5 years.
The following numbers are Cash flow to Net Income Ratio for Silverlake Axis.
2017
Net Operating Cash Flow: 216,903,646
Net Income : 796,058,383
Cash flow to Net Income Ratio: 0.27 (Significantly below 0.8)
2016
Net Operating Cash Flow: 209,126,384
Net Income : 284,269,279
Cash flow to Net Income Ratio: 0.74 (Below 0.8)
May I know why did The Fifth Person bought Silver Lake Axis despite failing this criteria twice, once in 2016 and another in 2017? When do we relax the criteria in the flowchart
Thanks.
Regards

0 Answers