I have a few courses that are supposed to cover this kind of thing which I actually paid for on udemy that aren't half as clear, concise, and useful as these are. Thanks!
This excellent video needs to be mandatory to all accounting students after their first lecture on the subject. Thank you very much for sharing your knowledge and your time Professor!
I have zero accounting/ finance background and have recently become interested in the stock market and investing. I was hitting a wall with some of the value investing content I was learning because I feel like the investment landscape is so different with now than it was 20-30 years ago. I am insanely grateful for this course! I have no idea what you're saying 1/2 the time, but I hope that after doing some further reading and research that ill be able to pick up more information when i come back in the future!
I love how the comments under Prof. Damodarans content are exclusively positive :D not that i would expect anything different but its noticeable how its completly opposite to basicly every other TH-cam Content where you will always find some "haters" Keep up that great work Professor! :) and also heads up to all my fellow soon-to-be-great-investors 🥳🥳
NET INCOME IS THE PROFIT AFTER TAX IN THE INCOME STATEMENT , BUT IN IND-AS ACCOUNTING FORMAT (financial statements of indian companies) THE CASH FLOW STATEMENT BEGINS WITH PROFIT BEFORE TAX. 12:34
Hello Professor, this video lecture has been a great help to me to understand cash flow statement. I am grateful for that. However, I would appreciate if you solve my little confusion. You calculated Cash flow from investment by adding investment in operating and non operating assets at 5:03, but, only considered investment in operating cash assets for Cash flow from operation and not included investment non operating asset at 11:36. What should be the correct case?
Finance income is added when computing CFO and Reduced in CFI to show a fair picture, as CFO will include interest expense which is actually a finance expense
Are we suppose to add the current portion of operating leases in current liabilities when we're calculating current liabilities in the working capital formula ?
Why is interest expense on the cash flow statement included in operating cash flows rather than financing cash flows if interest expense is the cost of borrowing money (such as from debt) which is a financing activity?
Hello Professor. How is an increase in non working capital a decrease in operating cashflow and not a negative part of cashlow from investment activities?
The professor Send there are only two ways to raise funds for a business debt or equity. How about donations? Is it legally forbidden for a business to raise cash via donations.
I have a few courses that are supposed to cover this kind of thing which I actually paid for on udemy that aren't half as clear, concise, and useful as these are. Thanks!
he is the best and guess what, for free ! (=
The best explanation of Statement of Cash Flows, from a finance professor.
This excellent video needs to be mandatory to all accounting students after their first lecture on the subject. Thank you very much for sharing your knowledge and your time Professor!
Wow, finally someone explained this so well and clear! Big thank you!
The ending part where you laid out how to find out about free cash flows to equity was such an A-HA moment for me! 🙏
hard-working lecturer. helpful to this MAcc student.
I have zero accounting/ finance background and have recently become interested in the stock market and investing. I was hitting a wall with some of the value investing content I was learning because I feel like the investment landscape is so different with now than it was 20-30 years ago. I am insanely grateful for this course! I have no idea what you're saying 1/2 the time, but I hope that after doing some further reading and research that ill be able to pick up more information when i come back in the future!
@@bdonunezn6593 where can I get professor Damodaran 's book on valuation you mentioned about?
Read the book and you'll understand the basic principles much faster. Good luck.
I love how the comments under Prof. Damodarans content are exclusively positive :D
not that i would expect anything different but its noticeable how its completly opposite to basicly every other TH-cam Content where you will always find some "haters"
Keep up that great work Professor! :)
and also heads up to all my fellow soon-to-be-great-investors 🥳🥳
Thanks for your sharing all the time, Mr.Damodaran!
NET INCOME IS THE PROFIT AFTER TAX IN THE INCOME STATEMENT , BUT IN IND-AS ACCOUNTING FORMAT (financial statements of indian companies) THE CASH FLOW STATEMENT BEGINS WITH PROFIT BEFORE TAX. 12:34
GOOD OBSERVATION SIR.
AWESOME explanation, thank you Professor! Just bought your book on Kindle.
Thanks Aswath! You are very generous.
thank you for producing this series!
Hello Professor, this video lecture has been a great help to me to understand cash flow statement. I am grateful for that. However, I would appreciate if you solve my little confusion. You calculated Cash flow from investment by adding investment in operating and non operating assets at 5:03, but, only considered investment in operating cash assets for Cash flow from operation and not included investment non operating asset at 11:36. What should be the correct case?
Finance income is added when computing CFO and Reduced in CFI to show a fair picture, as CFO will include interest expense which is actually a finance expense
Are we suppose to add the current portion of operating leases in current liabilities when we're calculating current liabilities in the working capital formula ?
This is just awesome!
Why is interest expense on the cash flow statement included in operating cash flows rather than financing cash flows if interest expense is the cost of borrowing money (such as from debt) which is a financing activity?
I have the same question, I would be grateful if professor Damodaran or some one else can reply
The interest expense has been considered while calculating net income ,which is your starting point .
Thank you, Professor!
Hello Professor. How is an increase in non working capital a decrease in operating cashflow and not a negative part of cashlow from investment activities?
Excellent stuff. Thank you, professor.
Amazing! Thank you!
why is free cash flow to equity potential dividends if it includes cash that is generated from financing?
The professor Send there are only two ways to raise funds for a business debt or equity. How about donations? Is it legally forbidden for a business to raise cash via donations.
Maybe that's coz they'd be considered as an income? Pls correct if im wrong
Thank you very much
beautiful!!!
thanks boss