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Author Topic: [-] numbers haywire in airline financial overview  (Read 185 times)

Offline groundbum2

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[-] numbers haywire in airline financial overview
« on: January 10, 2020, 09:06:20 AM »
I'm quite used to reading airlines financial statements, just to see how the competition is doing, but the cash flow bit for the last quarter for Rooster Air in DOTM makes no sense to me. Is there a bug? For example, it says -10M cash flow yet current assets went up! In addition the bottom says -5M operating profit yet the p/l shows a +10M profit. As I say I've read hundreds of these and I can follow the numbers through but not on this one...

« Last Edit: January 10, 2020, 09:22:22 AM by Sami »

Offline Sami

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Re: numbers haywire in airline financial overview
« Reply #1 on: January 10, 2020, 09:21:44 AM »
Looking at his cash flow statement, on Q1 he spent 25mil on aircraft lease payments, and a bit on purchasing slots, thus making his cash flow 10mil negative. Cash flow is not the same as profit/loss.

Seems allright to me.

Offline sanabas

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Re: numbers haywire in airline financial overview
« Reply #2 on: January 10, 2020, 09:33:06 AM »
 Current assets include prepaid expenses on leases, and the one month fee per ordered plane is a loss on other revenues/expenses. Spending a lot on lease prepayments will give negative cashflow from operating activities while keeping an operating profit. Looks like airline is profitable and spent cash on ordering leased planes to me.

 

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