69 Comments
User's avatar
Not Safe But Good's avatar

Thanks for putting together such a comprehensive summary!

Ruman's avatar

great content, thank you!

Terence Gabriel's avatar

I think Shareholder Yield = Buyback yield + Dividend Yield

(you wrote Buyback Yield = Dividend Yield + Shareholder Yield)

Compounding Quality's avatar

Correct. I made the adaptions needed.

Thanks for noticing!

Manuel Lobo's avatar

Acabo de leer el artículo sobre el FCF. Me ha parecido excelente y muy didáctico. Gracias por vuestro esfuerzo y generosidad.

Lounis's avatar

Great article as always ! thank you very much !

Arvind Raju GD's avatar

Always learning something from you guys keep me brainstorming with your inputs

Jose L. Ayala's avatar

Very nice. Thank you. Written in terms even I can understand (been investing for 2 years). Now I know why Munger says "If there's no cash flow, just say no."

Question: why does Yahoo Finance use Levered cash flow? AAII use Net Cash Flow?

Compounding Quality's avatar

Hi,

Levered cash flow is the amount of CF a business has generated after it has paid its financial obligations.

Unlevered cash flow is the amount of CF has generated before paying its financial obligations.

In general, it is better to use the levered cash flow.

Kuldeepak Mahto's avatar

Keep up the good work you are doing . May God bless you !

José Alonso Navarro L's avatar

Very good job! Keep it up! I would like to learn about “redflag”🚩

Compounding Quality's avatar

Thanks for the suggestion! We'll write something about this in the future.

freebird's avatar

Useful article. Thank you.

More on non-American small cap quality companies would be good.

UK, Canada, Australia, Germany, Sweden, France etc.

Muzamel shah's avatar

Amazing work like always

Varad's avatar

Really nice insights

Suraj Kumar's avatar

Nice good work love❤ from India🇮🇳

Eric Jurado's avatar

Another insightful and very useful gem! It solidifies my thinking. Thank you!

Compounding Quality's avatar

Thank you very much! If you want to learn about a certain period in the future... just let us know!

Ahmed Hussain's avatar

Nice

Compounding Quality's avatar

It's an honor Ahmed! Which topics do you want to see covered in the future?

Tjeng Lily's avatar

Hi , this content very helpfull . May I ask , what is the different between net earnings and net income ?

thank you

Compounding Quality's avatar

It’s actually the same. I am glad you like the article, Tjeng!

Tjeng Lily's avatar

So Net income / net earnings = EAT ( earning after tax ) ? I mean i look number earning after tax right ? Or net income but not include tax ?

I look your formula FCF Conversion = FCF / net earnings

And I want to know if every month, I pay tax, I show in cash flow report in activities from operational ?

Please your guidance . Thank you so much

Compounding Quality's avatar

Net income is always after tax, indeed!

Tjeng Lily's avatar

Thank you for your confirm.