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It means the business has positive free cash flow; it takes in more money than it spends in a year (i.e. it's not going bankrupt), but the paper value of assets
by genericpseudo 11y ago
It means the business has positive free cash flow; it takes in more money than it spends in a year (i.e. it's not going bankrupt), but the paper value of assets it owns (largely intangible goodwill from acquisitions) is written down, meaning that they take a loss.
This is generally a win, if you're expanding, because it means you pay no tax on your free cash.
- pedrocr 11y ago>It means the business has positive free cash flow Note that this isn't necessarily true. You can have negative Net Income, positive EBITDA but negative FCF (what really matters).