In the past looking at cash flow was a good way of simplifying...

In the past looking at cash flow was a good way of simplifying how profitable the company actually was. The reason for this was that revenue was being booked based on far looser assumptions as to whether cases would succeed. Post the WIP write-offs Shine have tightened up their their act and AASB15 (applicable 1 Jan 2018) also holds them to more rigorous standards though there is still subjectivity in what fees are booked as revenue and which are not.

Based on that going forward revenue should become a better indicator of future cashflow than it was historically. Though investors currently do not have good information as to estimated timing of when revenue would be received as cash. Based on the image I posted in the 'Captain Dumbo' thread if we assume similar to 2016 then each year roughly 30% of cash is from current year revenue and roughly 45% from prior year.

Though as i said in the other thread I'd like to see this breakdown reported every year as it's important info for evaluating the company.