Unlike economic deterioration in liquidity and use of additional borrowing to firefight the current crisis - financial reporting paints a rosy picture of improving
operating cash flows instead of reporting an increase in borrowing.
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Operating cash flows totaled $554 million (including $308 million of working capital sources and timing of other tax payments) in second-quarter 2019 and $1.1 billion (including $281 million of working capital sources and timing of other tax payments) for the first six months of 2019.
Net
operating cash flows for the quarter totalled $95,000 after receipt of a $469,000 research and development rebate.
Sees FY19
operating cash flows for 2019 $175M-$205M, representing an
operating cash flow to net income ratio of 90% to 110%.
On the other hand, companies that have poor earnings quality are those that report
operating cash flows lower than their accounting income.
Swire Pacific is rated one notch below Swire Properties, due to its structural subordination to external parties in accessing the stable
operating cash flows of Swire Properties.
Past-period GAAP and S&P Core Earnings both exhibit a positive and highly significant association with respect to current
operating cash flows, but the magnitude of the association is greater with S&P Core Earnings.
The company reported adjusted
operating cash flows of USD330m in the first quarter of 2016, against adjusted
operating cash flows of USD366m in the first quarter of 2015.
In addition, the Company reported
operating cash flows in 2015 in the amount of USD7.4 million and declared a dividend of USD0.5 million and is considering distributing an additional dividend of USD0.5 million during the current year.
(NYSE: OMG) said it has reported its financial results for the fourth quarter and year ended December 31, 2014 revealing strong
operating cash flows. The company delivered strong
operating cash flows of USD42 million in the fourth quarter and USD85 million in the full year.
Operating cash flows have been the focus of the prior research, therefore, the existing research offers little evidence on the ability of Free Cash Flow to measure performance.
