How Purchase Obligations (in the 10-k) Affect Inventories and Capex

Purchase obligations can be a key part of understanding future cash flow. In 2002, the SEC made the disclosure of purchase obligations (POs) a requirement in the MD&A section of the 10-k. Because POs are not part of GAAP, I’ll discuss the two ways they can affect future financials of a company. While Purchase Obligations […]