Descartes Historical Cash Flow
| DSG Stock | CAD 163.09 1.63 0.99% |
Analysis of Descartes Systems cash flow over time is an excellent tool to project Descartes Systems future capital expenditures as well as to predict the amount of cash needed to cover cost of sales, R&D expenses or production expansions. Investors should almost always look for trends in cash flow indicators such as Change In Working Capital of 15.9 M or Begin Period Cash Flow of 290.2 M as it is a great indicator of Descartes Systems ability to facilitate future growth, repay debt on time or pay out dividends.
Financial Statement Analysis is much more than just reviewing and examining Descartes Systems latest accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether Descartes Systems is a good buy for the upcoming year.
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About Descartes Cash Flow Analysis
The Cash Flow Statement is a financial statement that shows how changes in Descartes balance sheet and income statement accounts affect cash and cash equivalents. It breaks the analysis down to operating, investing, and financing activities. One of the most critical aspects of the cash flow statement is liquidity, which is the degree to which Descartes's non-liquid assets can be easily converted into cash.
Descartes Systems Cash Flow Chart
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Depreciation
Depreciation indicates how much of Descartes Systems value has been used up. For tax purposes Descartes Systems can deduct the cost of the tangible assets it purchases as business expenses. However, Descartes Systems Group must depreciate these assets in accordance with IRS rules about how and when the deduction may be taken, and how long it will last. The systematic allocation of the cost of a tangible asset over its useful life.Capital Expenditures
Capital Expenditures are funds used by Descartes Systems to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Descartes Systems operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.Stock Based Compensation
Compensation provided to employees in the form of equity or options to purchase company stock. This type of compensation is used to align the interests of employees and shareholders.Most accounts from Descartes Systems' cash flow statement are interrelated and interconnected. However, analyzing cash flow statement accounts one by one will only give a small insight into Descartes Systems current financial condition. On the other hand, looking into the entire matrix of cash flow statement accounts, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Descartes Systems Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. At this time, Descartes Systems' Net Income is very stable compared to the past year. As of the 28th of November 2024, End Period Cash Flow is likely to grow to about 337 M, though Other Cashflows From Financing Activities is likely to grow to (22.8 M).
| 2021 | 2022 | 2023 | 2024 (projected) | Capital Expenditures | 4.8M | 6.1M | 5.6M | 3.3M | Depreciation | 64.2M | 65.4M | 66.0M | 69.3M |
Descartes Systems cash flow statement Correlations
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Descartes Systems Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Descartes Systems cash flow statement Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 17.1M | 89.3M | 79.8M | 62.9M | 44.6M | 46.8M | |
| Free Cash Flow | 99.4M | 127.5M | 171.3M | 186.3M | 202.1M | 212.2M | |
| Change In Working Capital | (5.3M) | (3.6M) | 12.8M | 7.8M | 15.2M | 15.9M | |
| Begin Period Cash Flow | 27.3M | 44.4M | 133.7M | 213.4M | 276.4M | 290.2M | |
| Other Cashflows From Financing Activities | (2.2M) | (40K) | (72K) | (6.3M) | (24.0M) | (22.8M) | |
| Depreciation | 61.5M | 61.7M | 64.2M | 65.4M | 66.0M | 69.3M | |
| Capital Expenditures | 4.9M | 3.8M | 4.8M | 6.1M | 5.6M | 3.3M | |
| Total Cash From Operating Activities | 104.3M | 131.2M | 176.1M | 192.4M | 207.7M | 218.1M | |
| Net Income | 37.0M | 52.1M | 86.3M | 102.2M | 115.9M | 121.7M | |
| Total Cash From Financing Activities | 210.2M | 5.6M | 1.5M | (4.6M) | (14.7M) | (14.0M) | |
| End Period Cash Flow | 44.4M | 133.7M | 213.4M | 276.4M | 321.0M | 337.0M | |
| Other Non Cash Items | 337K | 207K | 308K | 53K | 114K | 108.3K | |
| Sale Purchase Of Stock | 238.0M | 6.2M | 2.7M | 1.7M | (4.9M) | (4.6M) | |
| Change To Inventory | (345K) | 99K | (498K) | 103K | 118.5K | 124.4K | |
| Investments | (297.0M) | (52.2M) | (95.1M) | (121.6M) | (148.3M) | (140.8M) | |
| Net Borrowings | (10.2M) | (25.6M) | (597K) | (1.1M) | (961.2K) | (913.1K) | |
| Stock Based Compensation | 4.9M | 6.3M | 11.0M | 13.7M | 16.5M | 17.3M | |
| Total Cashflows From Investing Activities | (297.0M) | (52.2M) | (95.1M) | (121.6M) | (109.5M) | (114.9M) | |
| Change To Account Receivables | 3.7M | 143K | (2.9M) | 151K | (6.6M) | (6.2M) | |
| Change To Operating Activities | (4.7M) | (12.8M) | 7.3M | (736K) | (662.4K) | (629.3K) | |
| Other Cashflows From Investing Activities | (292.1M) | (48.4M) | (90.3M) | (115.6M) | (104.0M) | (109.2M) | |
| Change To Netincome | 11.0M | 21.0M | 12.8M | 17.0M | 19.5M | 20.5M | |
| Change To Liabilities | (2.4M) | 5.2M | 8.5M | 7.5M | 8.7M | 9.1M | |
| Issuance Of Capital Stock | 238.0M | 6.2M | 2.7M | 1.7M | 9.3M | 8.8M |
Pair Trading with Descartes Systems
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Descartes Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Descartes Systems will appreciate offsetting losses from the drop in the long position's value.Moving together with Descartes Stock
Moving against Descartes Stock
The ability to find closely correlated positions to Descartes Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Descartes Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Descartes Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Descartes Systems Group to buy it.
The correlation of Descartes Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Descartes Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Descartes Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Descartes Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Descartes Systems Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.