Big variations in cash-flow figures depending on how stock compensation is handled prompt calls for changes in accounting rules
Some analysts recommend changing the accounting rules that enable companies—including Snap—to label their cash flow ‘positive.’Oct. 7, 2022 5:30 am ET Snap Inc. heralded its achievement of a first full year of positive cash flow for 2021 as “an important milestone” that would help it fund growth.—$293 million in cash from operations and $223 million in free cash flow for last year—don’t show the full picture.
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