Does Credit Suisse Generate Enough Cash Flows?

Large-cap Diversified Banking company Credit Suisse was up 6.5% during today's morning session. It clearly has investors' attention, and the business is profitable with average operating margins of 19.0%.

Date Reported Total Revenue ($) Operating Expenses ($) Operating Margins (%) YoY Growth (%)
2021-12-31 18,308,000,000.0 16,123,000,000.0 11.93 -45.17
2020-12-31 21,000,000,000.0 16,430,000,000.0 21.76 -1.63
2019-12-31 21,584,000,000.0 16,809,000,000.0 22.12 9.18
2018-12-31 20,608,000,000.0 16,432,000,000.0 20.26 n/a

But is the company cash positive? Here's a breakdown of Credit Suisse's free cash flow, which consists in the net cash flow from operations, minus its capital expenditures (i.e. investment in the business):

Date Reported Cash Flow from Operations ($) Capital expenditures ($) Free Cash Flow ($) YoY Growth (%)
2021-12-31 36,938,000,000.0 -1,419,000,000.0 35,519,000,000.0 592.02
2020-12-31 -6,031,000,000.0 -1,188,000,000.0 -7,219,000,000.0 61.25
2019-12-31 -17,338,000,000.0 -1,293,000,000.0 -18,631,000,000.0 -258.05
2018-12-31 12,883,000,000.0 -1,095,000,000.0 11,788,000,000.0 n/a

Credit Suisse's cash flows may on average be positive but their variability of 441.8% may be a yellow flag for more conservative investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.