Since it's Jan right now, the two most common will be:
■ 3 Quarters
■ 1 Year
Below, we can see CrowdStrike's cash flow over the past 9 months. The time frame is at the top $CRWD
Amateurs focus on Profits.
Professionals focus on Cash Flow.
Cash Flow Statement 101: 🧵
Since it's Jan right now, the two most common will be:
■ 3 Quarters
■ 1 Year
Below, we can see CrowdStrike's cash flow over the past 9 months. The time frame is at the top $CRWD
1️⃣ Operating Activities (Running the business)
2️⃣ Investing Activities (Investing in the business)
3️⃣ Financing Activities (Paying for the business)
There's freedom in how it gets reported, but this is the basic structure
The top line-item is NET INCOME.
You'd think this would represent the money a company puts in the bank at the end of the year.
But that's NOT THE CASE
Including:
■ Depreciation: Value of asset decreasing
■ Amortization: Expensing pre-paid cost
■ Stock-Based Compensation: Paying employees w/ equity
This covers:
■ Accounts Receivable: Sales not yet collected
■ Accounts Payable: Bills not yet paid
■ Inventory: Value of "stuff" not yet sold
The easiest way of thinking about it: this is a company's REAL net income -- on a cash (and not accrual) basis.
The first line item is very important:
CAPITAL EXPENDITURES
■ Cash spent to acquire or maintain property, plant, buildings, or equipment.
■ Cash spent to develop internally-used software
This is the money a company generates from business after paying for capital expenditures.
This is one of the most important financial metrics in my investing framework
FCF tells a very different story than NET INCOME
Consider $CRWD
📉Net LOSSES in the first 9 months of the past two years have been over $300 million
😟That seems pretty bad
1️⃣ ~$590 million in stock-based compensation (SBC).
2️⃣ ~$860 million in deferred revenue.
The latter represents fees $CRWD has already collected for service in the future. It's in the bank.
(Note: SBC *does* dilute shareholders)
💰$415 million in Operating Cash Flow in the 2021 time period
💰$668 million in Operating Cash Flow in the 2022 time period
When we do, $CRWD Free Cash Flow numbers are:
💰$315 million in the first 9 months of 2021
💰$467 million in the first 9 months of 2022
😟While it's true that $CRWD Net Income LOSSES were over $300M
🤑It's also true that $CRWD Free Cash Flow GAINS were nearly $800M
Knowing that is vitally important with stocks tanking and sources of funding drying up. The company can self-fund if it wants!
@BrianFeroldi , @Brian_Stoffel_ , and I run a live course that gives you the tools to understand financial statements with easy-to-understand examples.
Registration is only open for a few more days ➡️ https://t.co/9j51s8E9oV
DM me for a coupon code.
How to analyze a:
— Brian Withers (@StocksWithBrian) December 27, 2022
\u25aa\ufe0fBalance Sheet
\u25aa\ufe0fIncome Statement
\u25aa\ufe0fCash Flow Statement
In less than 5 minutes: pic.twitter.com/JseZux2yFJ
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“We don’t negotiate salaries” is a negotiation tactic.
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
THIS.
Russia hasn't been a willing partner in this treaty for almost 3 decades. We should have ended the pretense long ago.
Naturally, Rand Paul is telling anyone who will listen to him that Trump is making a HUGE MISTAKE here.
Rand is just like his dad, Ron. 100% isolationist.
They've never grasped that 100% isolationist is not 'America First' when you examine it. It really means 'America Alone'.
The consistent grousing of pursuing military alliances with allies - like Trump is doing now with Saudi Arabia.
So of course Rand has also spent the last 2 days loudly calling for Trump to kill the arms deal with Saudi Arabia and end our alliance with them.
What Obama was engineering with his foreign policy was de facto isolationism: pull all the troops out of the ME, abandon the region to Iranian control as a client state of Russia.
Obama wasn't building an alliance with Iran; he was facilitating abandoning the ME to Iran.
Obama wouldn't even leave behind a token security force, so of course what happened was the rise of ISIS. He also pumped billions of dollars into the Iranian coffers, which the Mullah's used to fund destabilizing activity [wars/terrorism] & criminal enterprises all over the globe
Russia hasn't been a willing partner in this treaty for almost 3 decades. We should have ended the pretense long ago.
Naturally, Rand Paul is telling anyone who will listen to him that Trump is making a HUGE MISTAKE here.
Arms control agreements are good when you have willing partners. Lightens the load on our military.
— John Noonan (@noonanjo) October 20, 2018
Russia hasnt been a willing partner in years. There will be gnashing of teeth from people who do arms control advocacy full time, but this is right movehttps://t.co/WmQE43ERCB
Rand is just like his dad, Ron. 100% isolationist.
They've never grasped that 100% isolationist is not 'America First' when you examine it. It really means 'America Alone'.
The consistent grousing of pursuing military alliances with allies - like Trump is doing now with Saudi Arabia.
So of course Rand has also spent the last 2 days loudly calling for Trump to kill the arms deal with Saudi Arabia and end our alliance with them.
What Obama was engineering with his foreign policy was de facto isolationism: pull all the troops out of the ME, abandon the region to Iranian control as a client state of Russia.
Obama wasn't building an alliance with Iran; he was facilitating abandoning the ME to Iran.
Obama wouldn't even leave behind a token security force, so of course what happened was the rise of ISIS. He also pumped billions of dollars into the Iranian coffers, which the Mullah's used to fund destabilizing activity [wars/terrorism] & criminal enterprises all over the globe
