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The Cashflow Statement is the most important since it reconciles the Income Statement and Balance Sheet. Core to our belief, "cashflow from operations without including financing or investment activity" is the best indicator of how a company's product or service is actually performing.
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OPS is Fact
- Objective measure.
- Conservative measure.
- Collected dollars.
EPS is Questionable
- Subjective measure.
- Risky measure.
- Booked dollars, but not necessarily collected.
Why Diagnose
What is OPS
How to use OPS Rankings
Use OPS to validate EPS
Cashflow vs. Earnings
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