According to my research, the ff_wkcap_chg lineitem on P123 actually corresponds to all changes in working capital and is what is typically required to go from Net Income to Cash Flow from operations.
This contradicts what is written in the P123 documentation which is:
“Other Net Working Capital Change is a total of all change-in-working capital lines that are not included in in other, specific lines in the operating cash flow section of the cash-flow statement”
Have other people also figured this out? Could we change the P123 documentation to provide the correct description?
Issue: OtherWCChg() is incorrectly using ff_wkcap_chg.
Solution: To minimize impact on subscribers, three new factors will be introduced with a phased deprecation plan.
To Add
WorkCapChg() → Working Capital Change is the period-over-period change in a company's working capital
WorkCapOtherChg() → The component of WorkCapChg() not captured by other measures like accounts receivable changes, inventory changes, accounts payable changes, etc.
AccruedExpChg() → Direct replacement for AccruedExp(). Renamed to emphasize that it reports a period-over-period change in accrued liabilities
To Deprecate
Sunset plan to be announced, which will include an end-of-life date and transition assistance.