CompanyGraph
Captures residual working capital movements not broken out separately, exposing miscellaneous cash absorption or release from smaller balance sheet items.
Change in other assets and liabilities groups together smaller working-capital movements that affect cash. It adjusts profit for changes in items like prepayments, other payables or other short-term balances.
Change in other assets and liabilities groups together smaller working-capital movements that affect cash. It adjusts profit for changes in items like prepayments, other payables or other short-term balances.
Common items included:
- Prepaid expenses: Payments made in advance for future services
- Accrued expenses: Expenses incurred but not yet paid
- Other receivables: Non-trade amounts owed to the company
- Other payables: Non-trade amounts owed by the company
- Deferred costs: Costs to be expensed in future periods
How it affects cash flow:
- Increase in other assets: Subtracted from cash flow (cash paid for future benefit)
- Decrease in other assets: Added to cash flow (prior payments now expensed)
- Increase in other liabilities: Added to cash flow (obligations incurred, cash retained)
- Decrease in other liabilities: Subtracted from cash flow (obligations paid off)
Why it matters:
- Cash flow reconciliation: Captures miscellaneous timing differences
- Volatility: Large swings may indicate one-time items or unusual transactions
- Transparency: Investigate significant changes in the notes to financial statements