How can you tell It uses the indirect method This can be seen in the statement

How can you tell it uses the indirect method this can

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How can you tell? It uses the indirect method. This can be seen in the statement of cash flows. Since net income is a starting point in measuring cash flows from operating activities under the indirect method, depreciation expenses must be added back to net income. So, depreciation expense is shown (or captioned) on the statement of cash flows. What does this evaluation tell you about the company? The company seems to have a very well defined vision of what they want to do with their company, and that is to reinvest the future earnings to support the operations, fund new acquisitions, and invest in the growth and development of their core business. They have a very healthy cash flow, and most of the ratios we have computed over the past few weeks for this company have been above or far above industry standard for comparable businesses. Post the name of your selected company and the link to the statement with your discussion post. You may use a service such as Yahoo Finance to help research industry averages. The notes to the financial statements will also be of use in answering the discussion questions. For many of the ratios in the discussion, you will need 2-3 years' worth of financial data. IPG Photonics: 2
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References IPG Photonics: CSIMarket: YCharts: 3
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