Quotes About Cash flows

PayPal is a strong business: it has a strong balance sheet and free cash flows, and it will help us take a look at where we want to independently invest.

There are great municipal investments out there, but on a blanket basis you have to be really careful about knowing what cash flows are supporting your investments.

Turning cash flows from contracts of professional athletes into securities is now possible through the power of blockchain.

The intrinsic value of an asset is determined by the cash flows you expect that asset to generate over its life and how uncertain you feel about these cash flows.

In the intrinsic valuation chapter, we observed that the value of a firm is a function of three variables—its capacity to generate cash flows, its expected growth in these cash flows, and the uncertainty associated with these cash flows.

cash from financing activities" on the statement of cash flows in the annual report. They can make a sick company appear to be growing even if its underlying businesses are not generating enough cash—as Global Crossing and WorldCom showed not long ago.

At any given point in the life of a project, the only two things that matter are the amount of effort and resources required to complete the project, and the present value of the cash flows that the project will generate. As harsh as this may seem, the energy and effort already invested in the project are irrelevant. Goals and strategies change, and sometimes the most prudent course of action is to cut your losses and to move on to more value-creating projects.

financial statements classify advertising costs as expenses, they are often better conceived of as investments. This reclassification makes sense because advertising is also a far more flexible expenditure than most costs. Amid challenging economic times, advertising can be scaled back relatively quickly, adding agility to protect and manage cash flows. However

I've done strategic planning, all kind of cash flows, but in fad marketing, it is all really irrelevant. It is marketing by total gut feeling. There is no market research. You either sell 500 of something, and it is a total bomb, or you sell 500 million.

The restructuring theme can be of various kinds. Some amount of debt gets serviced out of cash flows, some gets back-ended and resolved with sale of non-core assets of the company, and some debt gets converted into equity which might today look like a haircut.

The essence of a good investment manager is one who studies a given business and extrapolates the future cash flows that the business is likely to generate over the next several years. Based on the cash flow and asset assessment, they can then arrive at their expected rate of return if they bought a fraction of that business at a given price.

the likelihood that those estimated future cash flows will actually materialize (risk), how large those cash flows will likely be (growth), how much investment will be needed to keep the business ticking along (return on capital), and how long the business can generate excess profits (economic moat).