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**Phlkxkbh** · 10-01-2012, 09:01 AM

You would need to look at the statement of cash flows for the company to get a better idea of how they are doing. Net income can be skewed based on depreciation, amortization, and a number of other non-cash expense items. Especially the past two years when companies were able to take 100% bonus depreciation on a lot of their fixed asset purchases. Watch the next few years, when the 100% bonus depreciation goes away, I think you will see the net profit increase quite a bit with a lot of companies.

10-01-2012, 09:01 AM	#28
Phlkxkbh Join Date Oct 2005 Posts 406 Senior Member	You would need to look at the statement of cash flows for the company to get a better idea of how they are doing. Net income can be skewed based on depreciation, amortization, and a number of other non-cash expense items. Especially the past two years when companies were able to take 100% bonus depreciation on a lot of their fixed asset purchases. Watch the next few years, when the 100% bonus depreciation goes away, I think you will see the net profit increase quite a bit with a lot of companies.
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