RE:RE:RE:RE:RE:RE:RE:RE:Ni closes 1st day of short weekI think what he is trying to explain to you is that accrual accounting can make for distortions on the profit/loss (earnings) statement particularly in the short term and make for misleading conclusions. Comp is a good example where volatility in the share price causes the comp expense to bounce around and impact the earnings statement each quarter. FCF is a good measure of the companies ability to service their debt, and ultimately return capital to shareholders. Ernieandbert is a bond guy and the focus is always on cash flow (and balance sheets) as it should be.