chetan86

Nice explanations here thanks. Summary in my words, hope I'm right:

-"finance payables" or borrow cash money from the bank in order to pay off your suppliers since you don't have money to pay them.

-So that cash i received increases CFF, and me paying down my A/P decreases CFO, because that's what happens when you pay down A/P

-When you repay the bank later, CFF goes down, but nothing happens to CFO, so therefore CFO is greater than CFF

This overall process makes the company look @#$%& in the short term because they are borrowing money to pay their bills, and CFO decreasing looks bad (analysts focus on CFO cuz that is the cash flow from OPERATIONS, their "core" business supposedly)
But in the future when they pay that loan back they look better since they are paying off debt and CFO is higher.