Thursday, July 18, 2013

Caterpillar Doesn't Generate Enough Free Cash Flow To Cover Dividend

Yesterday Jim Chanos announced his Short pick Caterpillar (NYSE: CAT)

A look at the free cash flow for Caterpillar for the trailing twelve month ending March 31,2013:
Dividend Paid ttm ending 3/31/2013:  $1,329,000,000.00
Free Cash Flow ttm end 3/31/2013:   $1,171,000,000.00

FCF only generated 88% of dividend! 

click to see enlarged numbers

Equities Research

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