I got a message the other day from a reader of The Framework Investing about the calculations that went into IOI’s estimation of Free Cash Flow to Owners — FCFO. He was having particular difficulty understanding the calculations that go into our estimate of cash outflows as a result of anti-dilutionary stock buy-backs.

In fact, this estimate is tricky until you get the hang of it and I was impressed that a reader would contact me with the question in the first place. Our master classes go into this level of detail — actually cracking open financial statements and analyzing a company from ground up — but this level of detail is deeper than many investors want to go.

For those of you who are interested, I filmed a short (12-minute) video showing an example using an actual set of financial statements (for Union Pacific Corporation — the American railroad) and the IOI Company Analysis Workbook (which is included in our 100-Series course packages). This video is now displayed in the Video section of the IOI Dashboard.

I also wrote up a detailed summary, using the same set of financial statements and posted it here. Please take a look at both and feel free to reach out to me if you have any questions.