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Purpose -This paper aims to investigate the incremental information content of estimates of cash flow components in predicting future cash flows.Design/methodology/approach -The authors examine whether models incorporating components of operating cash flow (OCF) from income statements and balance sheets using the direct method are associated with smaller prediction errors than models incorporating core and non-core cash flow.Findings -Using US and UK data and multiple regression analysis, we find that around 60% of a current year's cash flow will persist into the next period's cash flows, and that income statement and balance sheet variables persist similarly. The explanatory power and predictive ability of disaggregated cash flow models are superior to that of an aggregated model, and further disaggregating previously applied core and non-core cash flows provides incremental information about income statement and balance sheet items that enhances prediction of future cash flows.Disaggregated models and their components produce lower out-of-sample prediction errors than an aggregated model. Originality/value -This paper contributes to the existing literature by further disaggregating cash flow items into their underlying items from income statements and balance sheets. Research limitations/implications -

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