I am slowly educating myself a little more about cash flow, its quite a complicated subject I am finding!
I have picked up the basic formula for free cash flow calculated by taking operating cash flow and subtracting capital expenditures.
I am unsure exactly which items I should regard as capital expenditiure, for example are aquisitions and investments in joint ventures capital expences?
Another problem I am finding is understanding how to treat things like share issues, proceeds from borrowings and bond issues in the cash flows from financing activities. These can make the cash flow look great!
Does anyone have a good book or paper they would recommend to help me learn to quickly read and understand the statement of cash flow in an annual report?