If a company receives a tax deduction when employees exercise their stock options, does this count as cash from operating activities? Or if the company defers its income taxes to a later period, does this count as cash from operations? I don't think so.
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That is why in Finance Accounting 101 they teach you to go through the financial statements and figure out what they took off the balance sheet and where the cash is really going. This has served me well over the years and to this day, when I am making an investment (not a trade) I always go through the annual reports.