Net profit crucial for predicting future cash flow in telecom companies.
The study looked at how gross profit, operating profit, and net profit affect predicting future cash flows in telecommunications companies on the Indonesian stock exchange from 2014 to 2019. They analyzed data from 5 companies over 6 years. The results showed that gross profit and operating profit don't individually impact future cash flows, but net profit does. However, when all three are considered together, they do have a significant effect on future cash flows.