Value Discipline

A celebration of value thinking, a salute to common sense and straightforward logic. I hope to explore the logic of Wall Street recommendations in a value context. Many of these ideas are employed in my portfolios and those of my family, friends, and clients. Please bear in mind that ALL ideas, opinions, and/or forecasts are for informational or entertainment value ONLY and should NOT be construed as a recommendation to invest, trade, or speculate in the stock market.

Wednesday, August 23, 2006

Tesco Cash Flows 1998-2006

Here is a look at the Statement of Cash Flows (using Reuters data) from 1998-2006. Note that the CFFO has exceeded net income consistently. Capex has been expansionary in the last five years resulting in capex greater than CFFO. However, assuming that maintenance capex would approximate depreciation, the business would have generated free cash flow through this period.

0 Comments:

Post a Comment

<< Home

Name: Rick

Location: Oakville, Ontario, Canada

I have been a portfolio manager of institutional portfolios for 30 years. My current interests focus on separately managed accounts for individuals as well as portfolio selection for unit investment trusts. I am a Chartered Financial Analyst as well as a Certified Financial Planner. My greatest joy outside of my family is training young people to become better research analysts, portfolio managers and financial planners.

View my complete profile