Question

What is the free cash flow of Dow Jones and Nasdaq from 2015 and 2016 and...

What is the free cash flow of Dow Jones and Nasdaq from 2015 and 2016 and the inference from the companies free cash flow?

Homework Answers

Answer #1
Company 2015 2016
NASDAQ Free cash flow = 552 Million USD Free cash flow = 642 Million USD
DOW JONES Free cash flow = 650 Million USD Free cash flow = 1.17 Billion USD
  • Inference :
    • The cash left with companies in the Dow Jones index is much more after spending on operating costs, capital expenditures,etc
    • The Dow Jones companies had a substantial growth rate of more than 80% every year, while the NASDAQ companies had a cash flow growth rate of 16% approximately
    • The Dow Jones companies were repaying back loans and dividends to its investors early and effectively compared to the NASDAQ companies.
    • Shareholder values of companies in the NASDAQ were not seeing growth rate as large as the ones in Dow Jones.
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