Purpose: This paper examines the relative predictive ability of earnings, cash flow from operations as reported in the cash flow statement, and two traditional measures of cash flows (i.e. earnings plus depreciation and amortisation expense, and working capital from operations) in forecasting...

Based on pre-IFRS data from Australia, we provide further evidence that disaggregating operating cash flow into its components enhances the predictive ability of aggregate operating cash flow in forecasting future cash flows. We also find that cash received from customers and cash paid to...

We examine whether the components of accruals and operating cash flows improve the predictive ability of earnings for forecasting future cash flows. We exploit data from Australia where actual cash flow components had been reported. Thus, we avoid data estimation errors and sample self-selection...