,
3 tweets,
1 min read
Read on Twitter
"'Cash flow from GE’s industrial operations will be negative this year' .. This year’s cash outflow from the power division will be worse than last year’s $2.7B burn.' bloomberg.com/amp/news/artic… Exactly backward: "The metric is considered an indicator of earnings potential."
"Earnings" are only an indicator of future cash flow which investors can actually spend. It's a DCF not DE. "The value of any financial asset boils down to three things: some measure of cash flow, some measure of risk, and some measure of forecast horizon." Michael Mauboussin
It is not possible to pay for "in-home, assisted living or skilled nursing care" with "earnings." What will pay for that is absolute dollar free cash flow. google.com/amp/s/mobile.r…
