his paper compares the predictive ability of models incorporating components of
cash flows and the length of the firms operating cycle relative to models incorporating
aggregate cash flow amounts. The main findings of this study are as follows. We find that
for each of three years examined, a cash flow components model is superior to an aggregate
cash flow model in predicting future CFO. Consistent with prior research which uses
estimates (and not actual) cash flow components, we find that receipts from customers and
payments to suppliers predict future CFO. Whilst prior research includes net interest received