investing-course
collection · 2 published
investing-course
Net income is not the cash a business generates
Costco's latest annual report puts net income at $8.1 billion and cash from operations at $13.3 billion for the same year, and the walk between them is where accrual accounting parts from cash.
investing-course
Costco owed more within a year than it owned in fiscal 2024
Costco's balance sheet lists $35.5 billion of liabilities due within a year against $34.2 billion of assets that turn to cash that fast, a gap that flips to a surplus a year later on the accounts Lesson 1's cash reconciliation used.