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Susan Phang asked 5 months ago

Hi,
On the free cash flow calculation in your video illustration (Alphabet), please advise why the other investing activities are not deducted from the operating cash flow.  Do you not consider the other investing activities as cash outflow?

2 Answers
Victor Chng answered 5 months ago

Hi Susan,
 
When calculating FCF is based on the operational business. Investing activities may outflow for investment which is not the main business operation. 

Erastus Jonker answered 5 months ago

At the moment I’m stuck filling in my excel spreadsheet. I want to document the Cash & Cash Equivalents, but this company has expanded its entry on the Income Statement to Cash, Cash Equivalents & Investments. Should I rather use the Net Operating Cash Flow entry from the Cash Flow Statement (to subtract Ivestments)?

Victor Chng replied 5 months ago

Hi Erastus Jonker,

May I know are you looking for Cash & Cash Equivalent or Cash Flow?

Erastus Jonker replied 5 months ago

I mean on the excel spreadsheet you uploaded for us. I need to fill in the amount for Cash & Cash Equivalents. In the video you uploaded you took this amount from the balance sheet

Erastus Jonker replied 5 months ago

I mean on the excel spreadsheet you uploaded for us. I need to fill in the amount for Cash & Cash Equivalents. In the video you uploaded you took this amount from the balance sheet

Victor Chng replied 5 months ago

Hi Erastus Jonker,

Yes, you should take the cash & cash equivalent from the balance sheet. It can be found under the current asset segment.

Erastus Jonker replied 5 months ago

I had a more careful look at the annual report and realized I looked at financial highlights instead of the complete balance sheet. In the balance sheet they separated the investments from cash. Thank you, Victor.

Victor Chng replied 5 months ago

Welcome Erastus Jonker :)

Victor Chng replied 5 months ago

Welcome Erastus Jonker :)