4 ms·
Cash flow was -$528M Jan-Jun, i. e. Q1 and Q2, yes. But it was only -$128M in Q2. Tell us why you chose the longer time frame for your prediction, exactly? Yo
by matt4077 8y ago
Cash flow was -$528M Jan-Jun, i. e. Q1 and Q2, yes.
But it was only -$128M in Q2. Tell us why you chose the longer time frame for your prediction, exactly?
Your math also has some basic problems, because $2.2 billion / ($1.27 billion / 6 months) != 7 months == 11 months.
More importantly: you're mixing some completely different levels of accounting: cash flow may or may not correspond to changes in capital structure such as CAPEX. When CAPEX involves actual cash being paid, it's also reflected in cash flow. In that case, you're counting the same expenses twice. etc..
- kgwgk 8y agoYour parent is not mixing different accounting concepts. Those are two lines taken directly from the statement of cash flows ("Net cash used in operating activities" and "Capital expenditures").
- mdorazio 8y agoCAPEX is not the only component of runway. There's also the standard operating expenses to cover as well. Tell us why you ignored that and why you think Q2 is more relevant than Q1 + Q2.
- JumpCrisscross 8y ago> changes in capital structure such as CAPEX Hmm, so capital structure typically refers to the big elements liability side of a business. Equity versus debt, bank loans versus bonds--that sort of thing. When one purchases capital equipment (e.g. a factor), that counts as CAPEX. I will admit that this nomenclature could be less confusing.