Resolved: non cash items cf

Question

Why are non-cash items added and not deducted from EBITDA in the cash flow projection?

Answer 1

Hello,

Good to hear from you!

The reason is that we want to add-back non-cash items that have already been subtracted when calculating Net income. In this way, the cash flow shows the true 'cash' impact.

Best,

Ned

Resolved: non cash items cf

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