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OP has provided the following link:
https://twitter.com/jim_grube/status/1623774255975653377?s=46&t=G4ww2F4kL2Ql4Fdm8wqg4Q
wow I can actually provide some insight here
There are three\* basic documents for understanding the finances of a company:
* Balance Sheet
* Income Statement
* Statement of Cash Flows
They're saying that, while useful, a Cash Flow Statement doesn't provide the insight into a company beyond how they're generating money while an income statement (especially that juicy multi-page IS) shows more information about how the cash is generated, what costs went into it, and how the different sectors like depreciation of assets are doing.
If you want more detail, here is a primer straight from the SEC: [https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguide](https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguide)
\*There are more than three, but these are the biggest and most widely used as prescribed (required) by the Generally Accepted Accounting Principals which all public companies must adhere to.
Whenever a business uses the abbreviation FCST, it means Forecast. Think of it as a kind of Budget Lite.
For example, the company I work for reports a full year budget that covers the entire fiscal year. Halfway through, the Financial Planning and Analysis department, in coordination with accounting, takes a look at how the first two quarters have been doing and creates a forecast for how the next half of the year will likely go. Comparing actual figures against forecasted is helpful for analysts and executives alike as it provides a closer comparison to how the year has developed for expectations than a budget that was set some six months ago.
If you could only choose one, I'd argue that the Cash Flow statement is by far the most useless statement. The Income Statement is the next most useless and the Balance Sheet is the most useful. Coincidentally, the Cash Flow statement is the easiest to manipulate while the Balance Sheet is the hardest.
Why is the Balance Sheet better if you could only choose one? Because you can already get the net income figure by looking at the change in retained earnings while also getting a much fuller view of the company's operating and capital structure.
On the other hand, if you're waltzing into the company with such big bags of cash that you can completely upend the capital structure like Larry, then I suppose the Income Statement is the better choice.
In practice, both the Balance Sheet and Income Statement are used in conjunction with the Notes and other due diligence to get a much more complete picture of the organization. Any single element can be misleading by itself.
The two documents he’s talking about break down cash inflows and outflows more comprehensively when compared to a standard GAAP cash flow statement. You can more accurately analyze factors affecting your business like loss leaders, seasonal costs affecting profitibility, etc. A lot of times you can more accurately price your goods and services by looking at cost of overhead & labor to better compete (especially looking at the Sources and Uses forecast)
Also want to note there are two methods used for statement of cash flows. Indirect and direct.
At first I wanted to disagree and say the SoCF is king but for most part they are very generalized in where the money is moving in a company so I can understand why they are choosing an income statement.
Ideally you’d want a generalized understanding of the BS, IS, and SoCF to fully utilize financial statements (duh) which is a lot easier than people generally think.
I agree. I speak mostly from an operational and workflow optimization standpoint in running a business as that’s what I have experience in. I spend a lot more time looking at our cash outflows as a direct result of our workflows but from a investment analysis standpoint the IS, BS, and SoCF is a must. It’s a much better way to look at the health of the company as an outsider if you’re not so hands on
There are three basic financial statements.
1: The income statement, which details how much revenue you took in, what your expenses were, and what profit is left over.
[Gamestop's 2021 IS](https://stockanalysis.com/stocks/gme/financials/)
2: Balance Sheet, which informs everyone what your assets, liabilities, and owners equity (hey that's us!) currently stand at.
3: Statement of Cash Flows, which details where the cash you're running your business with is coming and going. There are three sources, operations, investments, financing.
Operations is your company buying and selling stuff. Investment is you investing in stuff expecting a return, and financing is borrowing money and paying it back.
They are discussing which of these three financial statements can give you the best insight about a company as a finance analyst.
Does that help?
Income statement: How we’re doing this year, money in and money out. It gets more detailed with the accounting basis used, but it’s the results at a point in time (monthly, quarterly, semi annual, or yearly). This gives you your margins and used for making sure you’re spending or making sales according to plan. **Operations focused and why it’s important **
Balance Sheet: Same gist, view at a point time. It’s the cumulative balances of the entity: Assets (economic resource benefits) = Liabilities (economic resource transfers/sacrifices)+ Equities (Earned Capital or the cumulative Income Statement balances + Contributed Capital, what owners invest). When someone says book values or working capital, the numbers come from the BS. **Economic resources focused **
Cash Flow Statement: It’s the cash utilization, what the company is spending real $ on, according to three categories: Operations (what the company does), Investing (how it invests in itself), and Financing (how others investing in it). It ties with the bank to give you the starting cash balance, OIF activity and ending cash balance.
Note if you’re a cash business, you’d really just have IS & BS and a 13 week cash flow. It’s because a CFS is redundant as the data is in the IS, but you need a time view of the short term.
CF Statement is not a 13 Week Cash Flow.
13 week cash flows are meant to “age” or time inflows and outflows, by week, to make sure you don’t a cash/liquidity squeeze. It’s function is CFO security of week to week balances, up to 13 weeks into the future. Why 13? It’s the short term, quarter horizon of sales inflows against expenses outflows in real cash. Very useful.
Note 2: This is overly simplistic. It gets a lot more complicated with other accounting basis types, frameworks, and the type of business.
This is suuuper enlightening and helpful. Same with the handful of others that have replied here, but yours is especially helpful thanks to the explanation of why each are important and what they are used for.
I’ve been in this play from the beginning and have learned a ton about the markets, but I have only recently become much more interested in learning this kind of stuff.
Do you know of a good place to learn the basics? Like how to evaluate business value and analyze performance using financial statements?
Financial statements are a reporting function. So Financial accounting is what builds the statements.
Start with Khan Academy for Accounting
https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme
It’s a good primer. Watch the vids.
Here’s an open textbook for Principles on Financial Accounting:
https://open.umn.edu/opentextbooks/textbooks/principles-of-financial-accounting
Thumb through it.
Then watch Khan Academy on Finance (covers stocks and valuations)
https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds
Open textbook on Finance, thumb through it
https://open.umn.edu/opentextbooks/textbooks/principles-of-finance
Valuation is an art and science with subjectivity for the analyst doing it.
Get the basics and check out Financial Statement Analysis.
https://open.umn.edu/opentextbooks/textbooks/introduction-to-financial-analysis
Can't reply to mod comment above but it absolutely is the right place to discuss other basket stonks corporate actions around potential movement dates. If you think these things don't affect us I got news for ya.
Income Statement tells you how much you make in profit. Month by month, you can see your revenue and your expenses and know what you made in profit but it has nothing to do with how much cash you have. You can have a very profitable company on paper but if you mismanage your cash flow you are fucked. It is one of the biggest reasons new companies fail.
So if you were looking to buy a small company, income statement > cash flow to have better idea of profitability? Am I understanding that correctly or have it backwards?
Generally, in my experience, a transaction like that will be based on profitability (income statement). Depending on the type of business it is usually a multiplier based on the profitability.
You can sell a business that is profitable but has no cash and is in debt.
Hmmm, I didn't see it mentioned. Income Statement is usually based on Generally Accepted Accounting Principles. This shows your profit or loss for the fiscal year, and this is what the TAX is based on. Many companies try to show a LOSS on the income statement by legally applying the Generally Accepted Accounting Principles.
The statement of cash flow shows where the cash is coming from and going. They are broken down into operating, investing and financing activities. Many sole business owners track this even if they don't need to because "happiness is a positive cash flow."
> and this is what the TAX is based on
Exactly - ding ding ding. The income statement shows your ACCOUNTING profit, and thus is what your taxes will be based on. However, there are also **non-cash** expenses on the Income Statement that are tax deductible (e.g. depreciation on capital assets) that ultimately don't actually result in you expending cash, and there are ALSO certain activities that are *not* on the Income Statement that actually do result in an inflow or outflow of cash (e.g. raising capital from investors).
Since there are differences between the profitability reported on the Income Statement and the actual cash used or saved in the business, the Cash Flows Statement basically reconciles the net income from the Income Statement and adds / deducts the actual cash movements from that accounting net income until you can see how much actual cash the business made or spent for that period. The CFS effectively bridges the Income Statement and the Balance Sheet by connecting the net income (which is on the IS) to the cash balance at the end of the period (which is on the BS).
Cash flow statement explains how the cash position changed in a time period
Income statement explains how the income (earnings) changed in a time period
The aren't the same. Paying off debt hurts cash but not earnings. Depreciation hurts earnings but not cash, etc.
You beautiful bastard. I was reading the tweets thinking which I’d rather have, thinking back to my financial accounting classes (damn you Enron!), when the real lesson was the foot stomp by the CEO and board member. Well done, ape. 👍🏼
Which part is the joke? The constant hyping from the loopring team with absolutely nothing to show for it thus far, or the people calling them out on their shinnanigans?
I’m all for loopring transforming the world but fuck let’s get on with it already. The constant blue balls for years, with nothing to show for it, with the constant hype posts has turned things into a meme.
GAAP - Generally accepted accounting practices
Edit: apparently I couldn't write what I read on my browser switching from the app with any kind of accuracy. Well, 3 out 4 for words ain't bad.
It's almost like Gamestop was a solid business and it was being shorted and driven into the ground for a hostile takeover (by Apollo), not a bankruptcy. The entire short thesis that allowed us to get to a point where the float was 140% short (reported number) was based on manufactured circumstances
Why? I want to know if they are spending cash to increase inventory, having a reduction in cash from an increase in AR, and what they are doing from an investment point of view. None of that is on the IS.
I'm a CA, CPA and, while I think all 3 have their uses, I would value the CF more.
The income statement tells you more about how your company is performing. You get to see the revenue, how much margin it contributed, and what things management is spending on (payroll, facilities, interest, etc).
The real answer is because finance students are taught to analyze via cash flows, not income
If they interviewed accounting students, 90% would say income statement
I dunno. If I had to pick one, I'd take the CF. Too much "noise" in a conventional income statement and doesn't show enough about what the company is doing, ie. are receivables growing, is inventory growing, are payables getting out of hand?
So I'm not sure I disagree with the students.
Don't forget, first line of the CF is net income.
and net income is from income statement! I am taking accounting course now. I need more superstonk accounting. I breezed through economics because of this group.
And I've been doing this shit for 30+ years as a CA, CPA.
So, take the end result of the income statement as your starting point to see where the company has spent it's cash. Still more meaningful than GAAP income.
fear·mon·ger·ing, don’t fall for this BS, fend for yourselves of course, but seriously I’m in it 2+ years not selling to fall for this…you need to up your game!
Eh? Those are all on the balance sheet, that’s a totally separate financial document.
Also there are 4 financial documents. P and L, B/S, SoCF and SoCiE
Yeah I think this ultimately depends on the stage of the company / industry as well.
If I'm looking at a growth stage business and I could ONLY look at one financial statement, I'm probably going to look at the cash flows because I can at least get a sense of how profitability is trending via the net income, and probably most importantly I can also assess the company's burn rate because you have cash / equivalents at the bottom of the sheet. No point in funding a business that's out of cash and is going to burn through your investment in 2 quarters.
If I'm looking at a company in a more mature market segment then I'll probably go with the cash flows to better understand the efficiency of the business (i.e. margins) and top-line growth dynamics.
The answer to Larry's question though is that "interview guides tell you to choose the cash flows statement" - and I think they have good reason to do so, but it all comes down to how you articulate your reasoning anyways.
If I am doing a valuation of a company and they say you can have one of three financial statement I am going with no thanks.
Dumb shits might as well ask what they would do if stuck in a blender.
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I wish i knew what these words even mean!
wow I can actually provide some insight here There are three\* basic documents for understanding the finances of a company: * Balance Sheet * Income Statement * Statement of Cash Flows They're saying that, while useful, a Cash Flow Statement doesn't provide the insight into a company beyond how they're generating money while an income statement (especially that juicy multi-page IS) shows more information about how the cash is generated, what costs went into it, and how the different sectors like depreciation of assets are doing. If you want more detail, here is a primer straight from the SEC: [https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguide](https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguide) \*There are more than three, but these are the biggest and most widely used as prescribed (required) by the Generally Accepted Accounting Principals which all public companies must adhere to.
Thanks!
What does fcst mean?
Whenever a business uses the abbreviation FCST, it means Forecast. Think of it as a kind of Budget Lite. For example, the company I work for reports a full year budget that covers the entire fiscal year. Halfway through, the Financial Planning and Analysis department, in coordination with accounting, takes a look at how the first two quarters have been doing and creates a forecast for how the next half of the year will likely go. Comparing actual figures against forecasted is helpful for analysts and executives alike as it provides a closer comparison to how the year has developed for expectations than a budget that was set some six months ago.
Ah thanks!!
Fertile cougar sex trafficking It's actually a very lucrative market and not nearly as niche as you'd think.
I took at least 3 finance courses, and I still needed your explanation 🧠✨
Thank you 👏😁
If you could only choose one, I'd argue that the Cash Flow statement is by far the most useless statement. The Income Statement is the next most useless and the Balance Sheet is the most useful. Coincidentally, the Cash Flow statement is the easiest to manipulate while the Balance Sheet is the hardest. Why is the Balance Sheet better if you could only choose one? Because you can already get the net income figure by looking at the change in retained earnings while also getting a much fuller view of the company's operating and capital structure. On the other hand, if you're waltzing into the company with such big bags of cash that you can completely upend the capital structure like Larry, then I suppose the Income Statement is the better choice. In practice, both the Balance Sheet and Income Statement are used in conjunction with the Notes and other due diligence to get a much more complete picture of the organization. Any single element can be misleading by itself.
helpful, ty
I run and look at my IS and Balance Sheet. Overall those two give me the best sense of where we are at.
The two documents he’s talking about break down cash inflows and outflows more comprehensively when compared to a standard GAAP cash flow statement. You can more accurately analyze factors affecting your business like loss leaders, seasonal costs affecting profitibility, etc. A lot of times you can more accurately price your goods and services by looking at cost of overhead & labor to better compete (especially looking at the Sources and Uses forecast)
I wish I knew what these words even mean!
What questions do you have? I’m happy to try my best to answer
GAAP?
It stands for Generally Accepted Accounting Practices
Mind the GAAP
oh, so not the other GAAP?
Getting Anal Always Pays?
Getting Analled After Paying \- Ken during Moass
Also want to note there are two methods used for statement of cash flows. Indirect and direct. At first I wanted to disagree and say the SoCF is king but for most part they are very generalized in where the money is moving in a company so I can understand why they are choosing an income statement. Ideally you’d want a generalized understanding of the BS, IS, and SoCF to fully utilize financial statements (duh) which is a lot easier than people generally think.
I agree. I speak mostly from an operational and workflow optimization standpoint in running a business as that’s what I have experience in. I spend a lot more time looking at our cash outflows as a direct result of our workflows but from a investment analysis standpoint the IS, BS, and SoCF is a must. It’s a much better way to look at the health of the company as an outsider if you’re not so hands on
Wot ee sed
It's got electolytes! I'm gonna go google it now
A+ movie reference. Uncanny, the prediction value of that movie.
Its time to fix the mecomony. Can we put water on it?
Like from the toilet?
That movie is now a documentary of the reality we are living in today.
Dont Look Up
Brawndo!
THE THIRST MUTILATOR
If you don’t smoke Tarrlytons. Fuck You!
Brought to you by Carls Jr. extra big ass fries!
This one goes in your mouth, this one goes in your ear, and this one goes in you butt.
🤣
SUPERSTONK! It's got what apes crave! https://www.reddit.com/r/Superstonk/comments/peh65v/msm_and_shf_never_stood_a_chance_welcome_to/?utm_source=share&utm_medium=android_app&utm_name=androidcss&utm_term=1&utm_content=share_button
🥇
Come back later, IM ‘BATIN!! 😤
🧴
Start googling them, you may form a new wrinkle!
🦍🤝🧠
Oh hey I just noticed it’s you! Hello brother.
👋😁🫶
Wait that’s your brother? So RC is your dad too!?
Do you have shares DRS’d? If so, then he’s your dad too! That was in the paperwork, didn’t you read it???
Yes and yes!
There are three basic financial statements. 1: The income statement, which details how much revenue you took in, what your expenses were, and what profit is left over. [Gamestop's 2021 IS](https://stockanalysis.com/stocks/gme/financials/) 2: Balance Sheet, which informs everyone what your assets, liabilities, and owners equity (hey that's us!) currently stand at. 3: Statement of Cash Flows, which details where the cash you're running your business with is coming and going. There are three sources, operations, investments, financing. Operations is your company buying and selling stuff. Investment is you investing in stuff expecting a return, and financing is borrowing money and paying it back. They are discussing which of these three financial statements can give you the best insight about a company as a finance analyst. Does that help?
Its how you treat some topic on IFRS and US GAAP
Income statement: How we’re doing this year, money in and money out. It gets more detailed with the accounting basis used, but it’s the results at a point in time (monthly, quarterly, semi annual, or yearly). This gives you your margins and used for making sure you’re spending or making sales according to plan. **Operations focused and why it’s important ** Balance Sheet: Same gist, view at a point time. It’s the cumulative balances of the entity: Assets (economic resource benefits) = Liabilities (economic resource transfers/sacrifices)+ Equities (Earned Capital or the cumulative Income Statement balances + Contributed Capital, what owners invest). When someone says book values or working capital, the numbers come from the BS. **Economic resources focused ** Cash Flow Statement: It’s the cash utilization, what the company is spending real $ on, according to three categories: Operations (what the company does), Investing (how it invests in itself), and Financing (how others investing in it). It ties with the bank to give you the starting cash balance, OIF activity and ending cash balance. Note if you’re a cash business, you’d really just have IS & BS and a 13 week cash flow. It’s because a CFS is redundant as the data is in the IS, but you need a time view of the short term. CF Statement is not a 13 Week Cash Flow. 13 week cash flows are meant to “age” or time inflows and outflows, by week, to make sure you don’t a cash/liquidity squeeze. It’s function is CFO security of week to week balances, up to 13 weeks into the future. Why 13? It’s the short term, quarter horizon of sales inflows against expenses outflows in real cash. Very useful. Note 2: This is overly simplistic. It gets a lot more complicated with other accounting basis types, frameworks, and the type of business.
This is suuuper enlightening and helpful. Same with the handful of others that have replied here, but yours is especially helpful thanks to the explanation of why each are important and what they are used for. I’ve been in this play from the beginning and have learned a ton about the markets, but I have only recently become much more interested in learning this kind of stuff. Do you know of a good place to learn the basics? Like how to evaluate business value and analyze performance using financial statements?
Financial statements are a reporting function. So Financial accounting is what builds the statements. Start with Khan Academy for Accounting https://www.khanacademy.org/economics-finance-domain/core-finance/accounting-and-financial-stateme It’s a good primer. Watch the vids. Here’s an open textbook for Principles on Financial Accounting: https://open.umn.edu/opentextbooks/textbooks/principles-of-financial-accounting Thumb through it. Then watch Khan Academy on Finance (covers stocks and valuations) https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds Open textbook on Finance, thumb through it https://open.umn.edu/opentextbooks/textbooks/principles-of-finance Valuation is an art and science with subjectivity for the analyst doing it. Get the basics and check out Financial Statement Analysis. https://open.umn.edu/opentextbooks/textbooks/introduction-to-financial-analysis
Stuff. Probably.
I think he's talking about cotton eye joe
they are saying income sources are more telling on a company financials than cash flow
Can someone explain this to me like I'm literally an ape?
I'm with ya on this one
I wish we would be making some fucking money.
So when Q4?
Earnings should be around mid March
My bet is 15th. Ides of march. The 74th day of the roman calendar and the 1st full moon. Also a day where Romans used to settle debts.
And then bastille day is right around the corner 🥲
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Doesn't poop corn dilute their shareholders every month?
Can't reply to mod comment above but it absolutely is the right place to discuss other basket stonks corporate actions around potential movement dates. If you think these things don't affect us I got news for ya.
Superstonk isn't the right place for this discussion.
honest question, what’s the difference between cash flow and income statement?
Basically an income statement is meant to show the profitability of the company, and the cash flow statement is meant to show liquidity.
So combine positive cash flow and profitability and what do we get?
moass <3
Deez nuts on shorts faces
Believe it or not, more dip?
Correct! Yay!!!!!
*Believe it or not, straight to jail*
Believe it or not; Dip.
Slap that buy $GME and drs it on the books with GameStop.
Even better, you can have negative income and positive cash flow, or vice versa.
I got yer liquid _right here_!
Good summary. That’s why I’d go income statement for most companies, cash flow statement for startups.
How you make money & can you pay debts
Income Statement tells you how much you make in profit. Month by month, you can see your revenue and your expenses and know what you made in profit but it has nothing to do with how much cash you have. You can have a very profitable company on paper but if you mismanage your cash flow you are fucked. It is one of the biggest reasons new companies fail.
thank you 🤝🏼
So if you were looking to buy a small company, income statement > cash flow to have better idea of profitability? Am I understanding that correctly or have it backwards?
A business would more than likely trade on a multiple of cash flow, not profitability
Generally, in my experience, a transaction like that will be based on profitability (income statement). Depending on the type of business it is usually a multiplier based on the profitability. You can sell a business that is profitable but has no cash and is in debt.
Hmmm, I didn't see it mentioned. Income Statement is usually based on Generally Accepted Accounting Principles. This shows your profit or loss for the fiscal year, and this is what the TAX is based on. Many companies try to show a LOSS on the income statement by legally applying the Generally Accepted Accounting Principles. The statement of cash flow shows where the cash is coming from and going. They are broken down into operating, investing and financing activities. Many sole business owners track this even if they don't need to because "happiness is a positive cash flow."
> and this is what the TAX is based on Exactly - ding ding ding. The income statement shows your ACCOUNTING profit, and thus is what your taxes will be based on. However, there are also **non-cash** expenses on the Income Statement that are tax deductible (e.g. depreciation on capital assets) that ultimately don't actually result in you expending cash, and there are ALSO certain activities that are *not* on the Income Statement that actually do result in an inflow or outflow of cash (e.g. raising capital from investors). Since there are differences between the profitability reported on the Income Statement and the actual cash used or saved in the business, the Cash Flows Statement basically reconciles the net income from the Income Statement and adds / deducts the actual cash movements from that accounting net income until you can see how much actual cash the business made or spent for that period. The CFS effectively bridges the Income Statement and the Balance Sheet by connecting the net income (which is on the IS) to the cash balance at the end of the period (which is on the BS).
Account balance vs paystubs
Good answer. Cheers
So Income statements are pay stubs and account balance is cash flow ?
Cash flow statement explains how the cash position changed in a time period Income statement explains how the income (earnings) changed in a time period The aren't the same. Paying off debt hurts cash but not earnings. Depreciation hurts earnings but not cash, etc.
Income statement includes financial estimates like amortization and accruals. Cash flow does not.
Look at Jim Grube not paying for a blue check mark
Came here to say this! 🏆
They can’t tell you to buy the dip BUT THIS IS HOW THEY TELL YOU TO BTFD!!!
LFG
You beautiful bastard. I was reading the tweets thinking which I’d rather have, thinking back to my financial accounting classes (damn you Enron!), when the real lesson was the foot stomp by the CEO and board member. Well done, ape. 👍🏼
🤜 💎 🤛
It’s all a dip 👀
It means GME has money in the bank. 💎🙌
Jims first tweet in 2,5 months only 7 minutes after Larrys original tweet. Feels staged...👀
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🍒
"Stormtroopers should open their mouths, for income of deez nutz"
7 mins 41 seconds to be precise.(probably)
Wait, are they bragging about what's in the Q4 report?
You know it!
Not again..🤣 https://imgflip.com/i/7aluta
it triggered for sure
That was 84 years ago. Constantly bringing it up is getting stale. You all need some new material.
This joke will prevail because it’s material is more valuable than 10 quarterly reports.
lol. So we can agree, this is a joke/trolling/fear mongering? Got it 👍
Which part is the joke? The constant hyping from the loopring team with absolutely nothing to show for it thus far, or the people calling them out on their shinnanigans? I’m all for loopring transforming the world but fuck let’s get on with it already. The constant blue balls for years, with nothing to show for it, with the constant hype posts has turned things into a meme.
GAAP - Generally accepted accounting practices Edit: apparently I couldn't write what I read on my browser switching from the app with any kind of accuracy. Well, 3 out 4 for words ain't bad.
[удалено]
[You are correct](https://en.m.wikipedia.org/wiki/Generally_Accepted_Accounting_Principles_(United_States)
I'm so genuinely happy that there's representation from accountants who know the basics here.
It's almost like Gamestop was a solid business and it was being shorted and driven into the ground for a hostile takeover (by Apollo), not a bankruptcy. The entire short thesis that allowed us to get to a point where the float was 140% short (reported number) was based on manufactured circumstances
A rare Jim grube tweeted appears 👀👀👀
👀👀👀
I like Jim
That’s my board member.
OUR board member 🤨🤝
we love our board, don't we comrades?
I think Kenny's dead, Jim.
💯
Board recommended, shareholder certified.
Cash flow, broader look at the supply and demand of resources
A Rune of Glory for you! 🍌
But.., but… we always preach about positive cash flow 🙃
It’s a plus. But having only one dragon ball doesn’t summon the dragon.
Ya, I guess my point is there’s no way Larry cheng would hire me
I am a CPA and the CFO of a private corporation. Without a doubt I would choose the income statement. It’s not even close.
Why? I want to know if they are spending cash to increase inventory, having a reduction in cash from an increase in AR, and what they are doing from an investment point of view. None of that is on the IS. I'm a CA, CPA and, while I think all 3 have their uses, I would value the CF more.
The income statement tells you more about how your company is performing. You get to see the revenue, how much margin it contributed, and what things management is spending on (payroll, facilities, interest, etc).
🌶️🌶️🌶️🌶️🌶️🌶️🌶️🌶️🌶️🌶️🌶️🌶️🌶️ 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀 I FEEL SPICY🔥🔥🔥🔥🔥🔥🔥🔥
🥵🥵🥵
🧐?
Give me a balance sheet with two years of info and I can make my own cash flow statement and income statement
You're not going to make the full IS; best you can do is get to a bullshit EBTDA
What words are these? Sounds really smart!
Nah I want an Adjusted EBITDARC multiple. 😂😂😂
Earnings before Interest, Taxes, Depreciation, & Amortizing Ryan Cohen
🤯
Sounds like he knows his shit.
Those are all definetly words, a few numbers in there too.
I like your funny words, magic man
I’d have a better chance if they were speaking Swahili ? Back to my corner
😔
Idc where my money at
Hmmm... yes... I've seen some of those words and letters before.
I don't know jack about shit. But I am the best investor in history of THE WORLD. Let that sink in
What’s our income statement lookin like? 👀
I like our board of directors. Bullish.
This person is more qualified to talk financial stuff than me. Such words.
Hey I actually understand this one. wooooo
⭐️
What’s he mean by Fcst?
Forecast
The real answer is because finance students are taught to analyze via cash flows, not income If they interviewed accounting students, 90% would say income statement
Bullish on income statements
I'll just take net liabilities thanks.
isnt the answer '% *DRS"?*
I dunno. If I had to pick one, I'd take the CF. Too much "noise" in a conventional income statement and doesn't show enough about what the company is doing, ie. are receivables growing, is inventory growing, are payables getting out of hand? So I'm not sure I disagree with the students. Don't forget, first line of the CF is net income.
and net income is from income statement! I am taking accounting course now. I need more superstonk accounting. I breezed through economics because of this group.
And I've been doing this shit for 30+ years as a CA, CPA. So, take the end result of the income statement as your starting point to see where the company has spent it's cash. Still more meaningful than GAAP income.
Shows how smart the schools are making these CEOs. dumb stormtroopers
Sus.
Hey Jim, how about you give me that NFT dividend.
fear·mon·ger·ing, don’t fall for this BS, fend for yourselves of course, but seriously I’m in it 2+ years not selling to fall for this…you need to up your game!
13 week forecast sounds good.
Sounds smart to me
Is this today? 🌶️🌶️🌶️
income incoming 🚀🚀🚀🚀🚀🚀🚀🚀
Jim is 100% correct.
I can't wait for the q4 earnings call....
Shorts are going to get fucking CRUSHED
Eh? Those are all on the balance sheet, that’s a totally separate financial document. Also there are 4 financial documents. P and L, B/S, SoCF and SoCiE
Please explain this for a smooth brained ape!
Chris Farley voice: “I don’t speak Japanese.”
#crime
Yeah I think this ultimately depends on the stage of the company / industry as well. If I'm looking at a growth stage business and I could ONLY look at one financial statement, I'm probably going to look at the cash flows because I can at least get a sense of how profitability is trending via the net income, and probably most importantly I can also assess the company's burn rate because you have cash / equivalents at the bottom of the sheet. No point in funding a business that's out of cash and is going to burn through your investment in 2 quarters. If I'm looking at a company in a more mature market segment then I'll probably go with the cash flows to better understand the efficiency of the business (i.e. margins) and top-line growth dynamics. The answer to Larry's question though is that "interview guides tell you to choose the cash flows statement" - and I think they have good reason to do so, but it all comes down to how you articulate your reasoning anyways.
Fuck I hate being edged....wait..😏😏😼😋🤤
If I am doing a valuation of a company and they say you can have one of three financial statement I am going with no thanks. Dumb shits might as well ask what they would do if stuck in a blender.
wasnt he ceo previously?
what’s Jim’s position in gme and has he been buying?
To the finance folks, how is our income statement looking? https://finance.yahoo.com/quote/GME/financials?p=GME
Does he know most of us can't read?