Why does EBITDA overestimate cash flow from operations when working capital is growing?
Because increases in current assets are subtracted from NI to arrive at CFO under the indirect method.
. . . and decreases in current liabilities . . .
Why does EBITDA overestimate cash flow from operations when working capital is growing?
Because increases in current assets are subtracted from NI to arrive at CFO under the indirect method.
. . . and decreases in current liabilities . . .