cash flows new
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7/17/2019 Cash flows new
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3-1
Financial StatementFinancial StatementAnalysisAnalysis
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3-2
Cash Flow RatiosCash Flow Ratios
Fin. Debt SettlementFin. Debt Settlement
Period Period
Total Fin. LiabilitiesTotal Fin. Liabilities
Cash Flow by OperatingCash Flow by OperatingActivitiesActivities
How long it should take irm to
pay its obligations rom its
current cash low rom
operating activities! the longer
the weaker.
Statement o
Cash Flow "
#S
Suiciency $atio
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3-3
Cash Flow RatiosCash Flow Ratios
Cash Flow Sufficiency Cash Flow Sufficienc
y
Cash Flow Operating Act.Cash Flow Operating Act.
Long Term %ebtrepayments & %ividend
paid in Cash & Ac'uisition
o Assets
(ndicates the ability to
generate suicient cash
to meet its long term
primary obligations.
Statement o
Cash Flow
Suiciency $atio
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3-4
Cash Flow RatiosCash Flow Ratios
Asset Efficiency Asset Efficienc
y
Cash Flow Operating Act.Cash Flow Operating Act.
Total AssetsTotal Assets(ndicates how well
assets o the irm are
utili)ed to generate cash
low.
Statement o
Cash Flow "
#S $atios
*iciency $atio
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3-5
Cash Flow RatiosCash Flow Ratios
Capital Asset RatioCa
pital Asset Ratio
CFO & Cash (nlow romCFO & Cash (nlow romCapital Asset %isposals +Capital Asset %isposals +
Cash ,aid or %ividendsCash ,aid or %ividends
Cash Outlow or CapitalCash Outlow or CapitalAc'uisitionsAc'uisitions
Shows irm-s ability to meet itscapital ependiture needs rom
cash generated by operating
activities rather than rom
inancing activities /01 means no
need or debt inancing2
Statement o
Cash Flow
*iciency $atio
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3-6
Cash Flow RatiosCash Flow Ratios
Cash GeneratingCash Generatin
g
Power Power
CFOCFO
CFO &(nvesting CashCFO &(nvesting Cash
(nlows & Financing Cash(nlows & Financing Cash
(nlows(nlows
Shows irm-s ability tomeet generate cash and
shows the portion o the
cash low generated by
operations
Statement o
Cash Flow
*iciency $atio
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Cash Flow RatiosCash Flow Ratios
Cash Flow per ShareCash Flow per Share
Cash Flow Operating Act.Cash Flow Operating Act.
Avg. 3 o Ordinary sharesAvg. 3 o Ordinary shares
(mportant indicator or
the investors or
understanding cash
reali)ation rate
Statement o
Cash Flow "
#S $atios
*iciency $atio