Category: Money tips Release Date: 2006-03-29
With the market increasing emphasis on the quality of listed companies within the business, investor awareness of the cash flow greatly increased emphasis on earnings per share from the only began to turn its attention to the accounting profit, operating cash flow, and other indicators of a number of accounting. Therefore, the operating cash flow has become a potential future investors to tap the high-quality shares a new perspective.
Cash flow growth rate reflects the company's quality
The reason why investors concerned about the operating cash flow, because of the accounting indicators to reflect the viability of listed companies and ability to pay is one of the most indicators. For example, a company had been carrying out a profit, but a serious shortage of cash flow shows that the company earns is still someone else's pockets, perhaps after a couple of years, people have become rotten money owed to the company's accounts. If the company's net operating cash flow far exceeds the net, it means that the company's strong cash generation capability, the company's future performance growth of greater protection.
Statistics show that, as of April 12, Shanghai and Shenzhen A total of 840 listed companies reported its 2005 annual report, these companies in 2005, the total net profit of 172 billion yuan, an increase of 10.97%; the weighted average earnings per share of 0.3131 yuan, increased by 11.11% year on year; the weighted average net operating cash flow per share for 0.7281 yuan, up 18%. Since then, the data is not difficult to see that a listed company in 2005 operating cash flow growth in net profit increase of super-jump, which means the quality of listed companies has been significantly improved.
Cash flow growth is the precursor to the growth performance of
From the business perspective, companies selling products to obtain main income, in theory, will also bring in cash flow, after costs, the cost of matching, the formation of net profit, while the costs and the costs that are often related to the cash outflow. Thus, to a certain extent, net profit and operating cash flow positive relationship exists. But, due to prepaid accounts or accounts receivable subjects such as regulation, making operational flow and net profit and there is some differences.
However, if the operating cash flow over net income continued to grow so, then it means more than the company the ability to obtain substantial increase in cash flow, but also means that the operating cash flows in future fiscal year will be gradually reflected in net profit. Such as real estate enterprises, since the profit impact of settlement, pre-sale of commercial housing received in cash flow may not be recognized as net profit in the year, but in future years will be recognized as the pre-sale of commercial housing conditions to gradually into profits. Therefore, the growth in operating cash flow performance of listed companies is indeed a substantial increase in a signal.
Attention to two issues
Of course, in actual operation, it can not be too dogmatic, because some of the industry has a strong business is unique, such as capital-intensive business, fixed assets are relatively large, while the depreciation will not produce cash flow, resulting in operating cash flow is far far exceeding the net profit, such as water and electricity companies operating cash flow per share has been higher than the earnings per share. Have the same situation as well as business, tourist attractions, steel and other related industries.
At the same time, also need to take into account the net operating cash flow can be adjusted, the listed companies can be related parties to do high-sales revenue, then pay the purchase price, to the following year again when related parties through the purchase of goods. Thus, in the operating cash flow judged on the accounting data can not be too much blind faith in a derivation process, still requires a combination of business processes across the enterprise, to judge.
