Submitted by giteam t3_zyxclj in dataisbeautiful
Voxmanns t1_j2a8vxk wrote
Can someone explain how depreciation and amortization yielded a positive flow? I know depreciation to be the loss of asset value and amortization to be repayment of debt. Just not sure how that category generated money in.
Woyayadude t1_j2aaoqn wrote
They are non cash expenses from the income statement. So when doing a true cash to cash walk you add these expenses back. The loss in value is reflected in the asset section of the balance sheet.
Voxmanns t1_j2bn891 wrote
Got it. Thank you for explaining!
NuhUhDickhead t1_j2c4s69 wrote
Think I follow but it’s a funny way of doing it. I’m more used to seeing cash in from customers rather than profit minus impairments.
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