Board Topic: Net Cash After Operations
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Net Cash After Operations

Posted by: Loan101 Oct 27 2004, 10:14 AM
I would like to know if anyone can tell me what is Net Cash After Operations is make off. In other words, if I have a company that had $50M NCAO in one year, and the next year had (130M)-negitive- NCAO, what should I look for that made that happen?


Posted by: CreditAnalyst101 Oct 27 2004, 10:27 AM
Check out the following link to see how to calculate NCAO (Net Cash After Operations)

Net cash after operations calculation

Posted by: loanuniverse Oct 27 2004, 12:59 PM
Creditanalyst101 is right about using that page to find out how NCAO is calculated, but in the spirit of one banker helping another one let me digest that page for you.

In the case of a decrease in NCAO from one year to the other you have to ask yourself the following questions.

1. Did revenues decrease?

2. Is the company taking longer to collect {did A/R increase}?

3. Did inventory increase?

4. Did accounts payable decrease?

5. How about Operating expenses, did they increase?

One of those or a combination of several is the culprit. Answer those questions, and the answers will guide you.

May your cost of funds be low, your interest and fee income high, and you past dues nonexistent. rolleyes.gif

Posted by: Loan101 Oct 28 2004, 11:37 AM
thank you all

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