Why is segmental cash flow data generally not reported?
Broadly speaking, its because first the information might be too revealing, and second, because you would essentially need a cash reconciliation of each segment, which can be difficult in practice to get out of a corporate accounting system absent a complex ad hoc process.
You can sometimes get net assets, NWC or capex by segment, but not much more.
Remember the company has no real obligation to be truthful or accurate with its segment reporting. The only obligation is that it is consistent with management reporting.
1 Like