Positive cash flow doesn't equal profits

June 2013
Wallaces Farmer;Jun2013, Vol. 138 Issue 6, pBP2
Trade Publication
The article discusses the misconception that positive cash flow equates profitability. According to economist Stan Bevers, the use of cash flow as a financial diagnostic tool is dangerous unless the cash flow accounts for all the cost and the net worth is increasing. The three largest expenses in a ranch's profit category which include depreciation, labor, and purchased feed are discussed. A chart is presented depicting the opposites of costs and profits. INSET: The best is good at everything.


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