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QuestionsCategory: Financials QuadrantOperating cashflow per share for Alphabet
Kelly Q asked 1 year ago

Based on the Alphabet 2019 annual report, the operating cash flow was $54.5billion and I worked out the number of shares from page 82 to be 745.1 million shares. This results in an operating cash flow per share in 2019 of $73.15, which seems to be different from the $76.94 in the Alpha case study ‘financials’ video for Alphabet. May I know where did I compute wrongly, please?

1 Answers
Victor Chng answered 1 year ago

Hi Kelly,
 
The video is done by Adam so I not sure what is the number of shares that he use. It depend on the number of shares that person take, some investors uses weighted diluted earnings while other just uses basic number of shares. There is no right or wrong to the answer, just that it depend on how conservative you want to be. 
 
Your CFPS of $73.15 is also correct, the difference with $76.94 is about 4.9% only, so not much of difference when it comes to investing.