The answer seems clear, suggesting financial advisors need to change the conversations they have with clients from net worth as measured by a balance sheet to true net worth, as measured by human capital.
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This healthy free cash flow has enabled the company to pay down the debt from the Washington Group acquisition, leaving it with a strong balance sheet and a net cash position.
Nabors also sports a cash-rich balance sheet with 12% net debt.
Alstom currently has euro6.27 billion of net prepayments on its balance sheet.
Besides slicing and dicing business segment information, Axa Rosenberg's model looks at each company's overall balance sheet, cash flow from operations and net income.
This is roughly equal to one-third of the net assets on the balance sheet, and 10% more than the total market capitalization of the company.
When it does come into force, firms will have to include the full pension-fund position on their balance-sheet, which will generally reduce their net worth.
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Financially, Apollo Group is in stellar shape with a massive net cash position on its balance sheet, and significant free cash flow generation capabilities.
This is a company with off balance sheet debt that is over 60% of its net assets, write-downs that are over 25% of net assets, and after-tax profits that have been declining.
One of the balance sheet assets they accrue during this period are their tax-deductable Net Operating Losses (NOLs).
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Raymond Greaves, an analyst with Merrill Lynch, has calculated that, in March, there were around euro4 billion of net prepayments on the liability side of Alstom's balance sheet for which he cannot clearly identify liquid assets.
The computers compare net income with cash flow from operations and the cash level on the balance sheet.
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