StevieWonder

Almost Family Reports Healthy Quarter

In the cash flow statement, an increase in an asset(accounts receivable in this case) is considered a "use of cash". So increased sales on credit, reduces cash flow...those wacky accounting rules!!! Cash flow is also negative because of the acquisition of PatientCare, which had $47 million in sales for $45 million. Less than 1x sales...not bad. Overall, I don't see any major concerns as long as their accounts receivable ends up being good.


On Nov 13 07:50 AM False Profit wrote:

> Take a look at the cash flow statement. Free cash flow is negative,
> with a huge increase in working capital, indicating the company is
> stretching to show earnings. And the stock trades at 25x EPS in this
> market. It's a $30 stock at best.