Hey Reader,
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Did you know the cash flow statement didn't become a requirement until 1987? Before 1987, Companies were not required to prepare one. Instead, they often included a "funds flow statement" or "statement of changes in financial position," which focused on working capital changes rather than actual cash movements.

In today's issue:

• Aswath Damodaran takes us back to the basics of free cash flow
• Brian Feroldi breaks down the cash flow statement, the base for all free cash flow calculations
• Great article from Michael Mauboussin explaining how we can reorder the cash flow statement for better clarity
• Thread on calculating free cash flow to the firm

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My Favorite Finds

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Professor Aswath Damodaran takes us back to the basics of free cash flow​

Brian Feroldi breaks down the cash flow statement basics.

Breaking down the components of free cash flow and how to find the ingredients.

Michael Mauboussin's breakdown of the cash flow statement and how to read it for clarity

A quick explainer of the difference between net income and free cash flow

​Jeff Bezos 2004 Amazon's letter illustrates his thoughts on free cash flow; must read if you haven't already.

🔍Question of the Week

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📖Knowledge Tidbits

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The Investing for Beginners Podcast @IFB_podcast 1/9 Today's show thread will focus on Free Cash Flow to the Firm (FCFF). FCFF represents the base of most calculations using a DCF to value a company. Below we will uncover how to calculate FCFF. 🧵⬇️ 10:0 AM • Apr 7, 2023 213 Retweets 932 Likes Read 26 replies

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Thanks,
Dave Ahern
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​einvestingforbeginners.com​
​Investing for Beginners Podcast​

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