I have some questions regarding some important ratios of a company. Let me start with Free Cash Flow.
Free Cash Flow = Cash from operations - Capital Expenditure.
Cash from operations is gross profit. But, where or how do I find Capital Expenditure?As I wait for a correct reply I have resorted to taking the difference of “Net Fixed Asset” of current and last year, is this correct?
Capex can be found in the annual report: under cash flow from financing activities “purchase of fixed assets” heading…As far as i know Yahoo finance is one free website that provides capex figures in the cash flow statement,though only for a few years…Though its easily available in any of the paidsoftware’s…Seniors please correct me if i’m wrong, since I dont want to misguide on this important number
Sorry, its under cash flow from investment activities ‘purchase of fixed assets’ in annual reports
I had one question about the cyclical sectors. Which ratios would help me detect the health of the company, such that I can be sure that they would survive the down-cycle. I want to keep a check on their pulse.
Like see the Sugar sector. The biggest Co. Shree Renuka is near its all time low. Will the company survive the down cycle? Balrampurchini and Bajaj Hind.
Pls guide me in respect to the following question.
Q. What is the importance of the face value?
I asked general view of investors regarding BHEL. He said… the face value is Re.1 so buying at 170 is too expensive !!
Companies start with IPOs with face value (say Rs.10). Over the years they bring it down to 5 or even 1, like a lot of top scrips. What importance does this hold for the investor?
The old fashioned guys think that if face value is Re.1 then buying them above Rs.70 (approx) is a bad bargain… why so?